common fixed expenses
Q: WV Construction has two divisions: Remodeling and New Home Construction. Each division has an…
A: Fixed expenses are those expenses which do not change with changes in level of activity. Common…
Q: Mark Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base salary of…
A: Total unit variable cost per haircut = Commission expense + Utilities expense + Barber supplies…
Q: Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: Determine overhead under each of the following circumstances: a. A simplified cost approach is used…
A: In order to guarantee that billing rates are established appropriately, and revenues are maximized,…
Q: Ace Architects employs two architects, each having a different area of specialization. Caitlin…
A: Lets understand the basics. Predetermine overhead is required to calculate to allocate cost to the…
Q: Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of…
A: Service department is the department which supports the operating department in the activity.…
Q: Adrian Cursio & Associates is a consulting business that operates in a rented office in Melbourne…
A: It is given in the question that common cost of reception is allocated on the basis of income given…
Q: Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of…
A: Under cost allocation the cost is allocated to different cost object with the purpose of calculating…
Q: Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of…
A: The costs are allocated to different departments on the basis of different cost ratios allocation.…
Q: company rents a building with a total of 80,000 square feet, which are evenly divided between two…
A: The expenses in the building apartments are allocated based on area and area increases expenses…
Q: The amount of administration expenses that should be allocated to the Assembly Department for the…
A: What is Cost Allocation?The allocation of costs for service departments is a crucial step in cost…
Q: Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions,…
A: Lets understand the basics. Service department costs are allocated to production department using…
Q: RS Construction has two divisions: Remodeling and New Home Construction. Each division has an…
A: Fixed cost is the cost incurred for the production of goods or services (business expense) that is…
Q: Bobby's Inc. operates a chain of restaurants across North Carolina. Each restaurant employs ten…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of…
A: On the basis of variability costs may be classified into variable cost and fixed costs . Variable…
Q: wV Construction has two divisions: Remodeling and New Home Construction. Each division has an…
A: Fixed expenses are those expenses which will not change during the particular period. Common fixed…
Q: Seal Financial Advisors provides accounting and finance assistance to customers in the retail…
A: Predetermined overhead rate= Total Expected cost/No. of Hours Total Expected cost= 755000 No. of…
Q: Clarissa, the Sales Coordinator, who is David, the Shipper, who is paid $.20 pe Alan pays his…
A: Salary expenses are as follows Brandon as a manager get the salary from the company $1000 per week…
Q: Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance…
A: The service department costs are allocated to production department using various methods. The…
Q: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of…
A: Costs of committed resources are the costs that remain fixed for a given level of activity. Since…
Q: Your Companey has two service departments – Personnel and Maintenance. The Maintenance…
A: The costs can be allocated among departments using various methods as direct, step and reciprocal…
Q: Matthew Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base salary of…
A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…
Q: The centralized computer technology department of Hardy Company has expenses of $320,000. The…
A: Per hour rate = Expenses / Total hours = $320,000 / 4,000…
Q: Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of…
A: Answer:- Cost allocation meaning:- Identification, accumulation and assignment of costs to certain…
Q: Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to…
A: Total variable cost = Commission + supplies +utilities Total fixed cost = Salary + advertising +…
Q: The Calling Company has three departments that occupy floor space in the 50,000 square feet building…
A: Cost allocation means the amount of total cost allocated to different departments of an entity on…
Q: Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of…
A: Lets understand the basics. Service department are the department which supports the operating…
Q: WV Construction has two divisions: Remodeling and New Home Construction. Each division has an…
A: Fixed Expenses which cannot be allocated to any production departments. Common fixed expenses =…
Q: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of…
A: 1. Flexible cost is the cost which keeps varying based on the usage of resources. Committed cost is…
Q: Pinnacle Consulting employs two CPAs, each having a different area of specialization. Judy…
A: Predetermined overhead rateThe predetermined overhead rate is an important component in allocating…
Q: A company employees two consultants who each have a different specialization. Caitlin specializes in…
A: The Predetermined Overhead Rate( POR) is a destined computation used in manufacturing and other…
Q: Longyearbyen Co. incurs $1,050,000 of overhead costs each year in its three main departments,…
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…
Q: Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 210…
A: Using cost accounting, the indirect costs are allocated among different departments. Using…
$196,000
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$306,000
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$110,000
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$127,000
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- RS Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $59,000 annually and one salaried estimator who is paid $53,000 annually. The corporate office has two office administrative assistants who are paid salaries of $39,000 and $32,000 annually. The president's salary is $128,000. How much of these salaries are common fixed expenses? O $128,000 O $112,000 $199,000 O $311,000wV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $98,000 annually and one salaried estimator who is paid $54,000 annually. The corporate office has two office administrative assistants who are paid salaries of $58,000 and $41,000 annually. The president's salary is $165,000. How much of these salaries are common fixed expenses? Multiple Cholce $165,000 $264,000 399,000 $348,000 11:2 92 F AQI 61 9/24 pe here to search DELLWV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $134,000 annually and one salaried estimator who is paid $72,000 annually. The corporate office has two office administrative assistants who are paid salaries of $76,000 and $50,000 annually. The president's salary is $192,000. How much of these salaries are common fixed expenses? Multiple Choice $192,000 $318,000 $126,000 $438,000
- Seal Financial Advisors provides accounting and finance assistance to customers in the retail business. Seal has four professionals on staff and an office with six clerical staff. Total compensation, including benefits, for the professional staff runs about $573,000 per year, and normal billable hours are 8,300 hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are $755,000. Seal allocates office and administrative costs to clients monthly, using a predetermined overhead allocation rate based on billable hours. What is the predetermined overhead allocation rate that Seal will use for office and administrative costs? (Round your answer to the nearest cent.) A. $69.04 per hour B. $21.93 per hour C. $160.00 per hour D. $90.96 per hourA company employees two consultants who each have a different specialization. Caitlin specializes in industrial commercial construction and Zachary specializes in residential construction. The company expects to incur total overhead costs of $573,540 during the year and applies overhead based on annual salary costs. Caitlin's annual salary is $168,300, and she is expected to bill 2,400 hours during the year. Zachary's annual salary is $92,400, and he is expected to bill 2,200 hours during the year. Required: a. Calculate the predetermined overhead rate. b. Assuming that the hourly billing rate should be set to cover the total cost of services plus a 25% markup, compute the hourly billing rates for Caitlin and Zachary Complete this question by entering your answers in the tabs below. Required A Required B Calculate the predetermined overhead rate. Predetermined overhead rate %Your Companey has two service departments – Personnel and Maintenance. The Maintenance Department's costs of $160,000 are allocated on the basis of standard hours used. The Personnel Department's costs of $40,000 are allocated based on the number of employees. The costs of the operating Departments A and B are $80,000 and $120,000, respectively. Data on standard service hours and number of employees are as follows: Standard Service Maintenance Dept. Personnel Dept. Production Depts. A B Hours used - 400 480 320 Number of Employees 20 - 80 240 What is the cost of the Maintenance Department allocated to Department B using the direct method? What is the cost of the…
- The Calling Company has three departments that occupy floor space in the 50,000 square feet building it rents for $500,000 annually. Department A occupies 25,000 sq ft; Department B occupies 10,000 sq ft; and Department C occupies 15,000 sq ft. How much annual rent expense should be allocated to Department B?Dye and Dye, Attorneys-at-Law, each bill 1,500 hours per year and receive pay of $100,000 each. Four paralegals work for the firm and each receives pay of $40,000 and works 2,000 hours per year. Overhead of $396,000 is anticipated, of which $300,000 is attorney support, and the rest is paralegal support. Determine overhead under each of the following circumstances: a. A simplified cost approach is used based on hours. b. A simplified cost approach is used based on payroll dollars. c. An activity-based costing approach is used. Attorney support is based on labor costs, and paralegal support is based on hours worked.Assume a company incurs $192,000 in customer service salaries. The employees in the Customer Service Department spend their time performing four activities as follows: 40% of their time is spent in Problem Resolution, 25% of their time is spent in New Account Setup, 20% of their time is spent in Payment Processing, and 15% is spent in Other activities. In the company's activity-based costing system, how much of the customer service salaries would be allocated to the New Account Setup activity? A) $76,800 B) $38,400 C) $124,800 D) $48,000
- Ace Architects employs two architects, each having a different area of specialization. Caitlin specializes in industrial commercial construction and Zachary specializes in residential construction. Ace expects to incur total overhead costs of $737,100 during the year and applies overhead based on annual salary costs. Caitlin is a senior partner, her annual salary is $168,750, and she is expected to bill 3,000 hours during the year. Zachary is a senior associate, his annual salary is $94,500, and he is expected to bill 2,800 hours during the year. a. Calculate the predetermined overhead rate. Predetermined Overhead Rate b. Assuming that the hourly billing rate should be set to cover the total cost of services plus a 20% markup, compute the hourly billing rates for Caitlin and Zachary. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Caltin Zachary % Billing rate per hour per hourElliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to the salaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Which of the resources associated with purchasing can be classified as flexible resources? Forms, Postage and Supplies Which of the resources associated with purchasing can be classified as committed resources? PC system and clerks 2. Compute the total activity availability, and break this into activity usage and unused activity. Activity availability: fill in the blank 3 purchase orders Activity usage: fill in the blank…Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to the salaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. REQUIRED: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing…
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