Compute the amount of the invoice to be presented to LUCELE
Q: Lamothe Solutions is a management consulting firm. Its Business Division advises firms on the…
A: Transfer pricing is a crucial concept in the field of management accounting and finance. It refers…
Q: (ALC) is a service sector company that operates in the far Northern side of Armidale. Its 2022 books…
A: According to the question given, we need to compute the indirect cost per direct labor…
Q: Professional Pool Cleaning Service provides pool cleaning services to residential customers. The…
A: The possible reasons for the profitability of the Birman business segment include: A. Higher revenue…
Q: . Expansion of the Minnesota factory. . Negotiation of the long-term contract on a royalty basis. .…
A: The answer is given below:
Q: A&R Quality Advisors is a small consulting firm offering quality audits and advising services to…
A: Note: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Armidale Company Ltd (ALC) is a service sector company that operates in the far Northern side of…
A: According to the question given, we need to compute the indirect cost per direct labor…
Q: Job Order Cost Accounting for a Service Company The Fly Company provides advertising services for…
A: This question provides that Overhead is 50% of the media purchase and asking the journal entries for…
Q: Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources),…
A: Reciprocal methodThe reciprocal method is one of the methods of allocation of cost which uses…
Q: Following: m has enquired about how to treat the income of Oliver ervices to AGL Umited. The client…
A: (a). Factor should be considered: Weekly worked time The specific length of time Certain seasonal…
Q: The Fly Company provides advertising services for clients across the nation. The Fly Company is…
A: A journal entry is prepared by the company to record the non-economic & economic transactions of…
Q: Decorous Stone and Tile (“Deco”) is a Canadian public company and wholesale distributor of various…
A: Deco's income statement for the year ending December 31, 2020 is as follows: Sales $52,000,000 Less:…
Q: Whang Construction Company is a general contractor that specializes in custom residential housing.…
A: A cost that is directly related to the creation of a certain commodity or service is referred to as…
Q: Manning Systems is a commercial software vendor that sells billing and other financial software to…
A: Activity based costing means where the product is valued on the basis of actual direct material,…
Q: The law firm END, LLP provides legal services to a wide range of clients in the KC area. The firm…
A:
Q: If each professional in a service company is paid an annual s alary, why might the firm want to use…
A: Every professional in a service company is received an annual salary but sometimes firm wants to use…
Q: project (direct materials, direct labor, and overhead) are multiplied by 140% to determine the…
A: Profit is earned over the cost which denotes to billing amount after adding profit to cost.
Q: ABD Corporation operates sales, administrative, and printing activities from a facility in the…
A: Definitions: i) Variable Cost are the Costs that changes with change in the production and selling…
Q: National Co. produces small electric engines. It incurs the following costs for the year. Which of…
A: Manufacturing overhead costs are all indirect costs which are incurred during manufacturing process…
Q: The Fly Company provides advertising services for clients across the nation. The Fly Company is…
A: a) Work in progress 3,29,000 Salaries payable 3,29,000
Q: Whitley Construction Company is in the home remodeling business. Whitley has three teams of highly…
A: Underapplied Overheads: When the actual manufacturing overhead costs spent during a period exceed…
Q: Maintenance Printing Developing 4,000 2,600 $12,600 Personnel Machine-hours 2,000 2,000 Labor-hours…
A: University Printers has two service departments (Maintenance and Personnel) and two operating…
Q: Miami Training Support (MTS) produces materials for companies to use for training new hires as well…
A: Contribution means the difference between the selling price and variable cost.Fixed cost when…
Q: Concord, Reiser, and Associates, a law firm, employs ABC. The following Estimated data for each of…
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…
Q: Job order cost accounting for a service company The Fly Company provides advertising services for…
A: All amounts are in dollar.
Q: Data concerning three of the activity cost pools of Salcido LLC, a legal firm, have been provided…
A: Activity rate is the term used in activity-based costing which represents the overhead cost per…
Q: 1. Given the preceding information, what is the markup percentage on total direct costs? ________-…
A: Markup percentage on total direct costs: = (Markup given (÷) Total direct cost) x 100 = [993330 (÷)…
Q: Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources),…
A: The direct method of allocation is used to allocate the cost of the service department to the…
Q: Salvatore LLC provides a wide variety of legal services and uses an activity-based costing system.…
A: Cost pool activity rate = Total client meetings cost/Number of meeting hours
Q: Software to large professional services firms. Management has decided to analyze certain costs…
A: Customer profitability is a measure of how profitable a specific customer is. This metric compares…
Q: Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources),…
A: TO ALLOCATE SERVICE DEPARTMENT COST:a. Calculate first the reciprocal ratios.b. Allocate IT and HR…
Q: Indigo, Reiser, and Associates, a law firm, employs ABC. The following Estimated data for each of…
A: The applied overhead rate is computed as follows: -
Q: TAC Industries, Inc. sells heavy equipment to large corporations and federal, state, and local…
A:
Q: City Construction Company Limited (CCCL) is involved in the construction of large buildings and…
A: a) As per ISA - 210 " Agreeing to the terms of audit engagement" the matter the audit firm should…
Q: The Fly Company provides advertising services for clients across the nation. The Fly Company is…
A: Journal entry refers to recording and classifying business transactions into books of accounts…
Q: Oak Enterprises allows employees to purchase, at cost, manufacturing materials, such as metal and…
A: The company has a policy to sell goods to its employees at cost. It means cost at which company…
Q: Required: If Woodstock Binding outsources the IT Department functions, what is the maximum it can…
A: Outsourcing-The business practice of hiring a party outside a company to perform services or create…
Q: Explain the internal control procedures that Research Sdn Bhd should adopt over the updating of its…
A: Answer to Part-(b):- Internal control procedures that Research Sdn Bhd should adopt over the…
Q: Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources),…
A: The service department costs can be allocated to other operating departments using various methods.…
The Allianz group provides consulting services to a number of Caribbean countries in the area of renewable energy. To determine the cost of each consulting engagement, The Allianz group uses a job order system. Costs incurred by the group on projects that are not identifiable with specific clients, are charged to jobs via a predetermined overhead rate (15 %). Clients pay the Allianz group within 30 days of the date of the Invoice. The Allianz group’s standard markup is 20%.
In December 2020, The Allianz group completed a project for the St Lucia Power Company (LUCELEC). The following costs were incurred by Allianz in completing the project for LUCELEC. Consulting Staff $4,500,000, Office Staff 300,000, Travel to/from St Lucia 100,000 and Other office costs 100,000.
Required
- Compute the amount of the invoice to be presented to LUCELE
Step by step
Solved in 2 steps
- The Fleming Company of Anguilla (FCA) designs and produces automotive parts. In 2019. actual variable manufacturing overhead is $290,000. FCA's simple costing system allocates variable manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged nonconpetitive prices, so FCA's controller Matthias Hodge reaálizes that it is time to exanine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources: design production, and engineering Interviews with the department personnel and examination of time records yield the following detailed information: Usage of Cost of Drivers by Customer Contract Gumbs Connor Manufacturing Overhead in 2019 Richardson Cost Driver | CAD design hors Engineering hours Machine hours Motors Motors Auto Department Design Production Engineering Total $35,000 250 T00 3,700 150 T30…Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company's human resources (HR) department. The annual costs of the HR department total $14,000,000 a year. You have the following selected information about the two divisions: Northern Southern Required: a. What is the HR cost that is charged to each division if the number of employees is used as the allocation basis? b. What is the HR cost that is charged to each division if the wage and salary expense total is used as the allocation basis? Required A Number of Wage and Salary Expense ($000) $ 173,600 106,400 Complete this question by entering your answers in the tabs below. Employees 2,310 1,890 Division Northern Southern What is the HR cost that is charged to each division if the number of employees is used as the allocation basis? Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands. Required B HR Cost Required A Required B >…Smith Manufacturing Company allows employees to purchase materials, such as metal and limber, for personal use at a price equal to the company's cost. To purchase materials, an employee must complete a materials requisition form, which must then be approved by the employee's immediate supervisor. Brian, an assistant cost accountant, then charges the employee an amount based on Smith's net purchase cost. Brian is in the process of replacing a deck on his home and has requisitioned lumbar for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, Brian reviewed all the purchase invoices for the past year. He then used the lowest price to compute the amount due to the company for the lumber. The Institute of Management Accountants (IMA) is the professional organization for managerial accountants. The IMA has established four principles of ethical conduct for its members: Honesty Fairness Objectivity Responsibility These…
- The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 68% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $261,000 Take Off Airlines 85,000 Sleepy Tired Hotels 208,300 Tastee Beverages 122,300 Total $676,600 During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Direct Labor Media Purchases Vault Bank $187,000 $717,100 Take Off…Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs. IT HR 0 16 1,525 0 Publishing 2,440 24 $ 152,000 $ 247,950 $ 431,000 Binding 2,135 40 $ 392,500 Woodstock Binding estimates that the variable costs in the IT Department total $112,500, and in the HR Department variable costs to $142,500. Avoidable fixed costs in the IT Department are $18,250. Required: If Woodstock Binding outsources the IT Department functions, what is the maximum it can pay an outside vendor without increasing total costs? Note: Do not round intermediate calculations. × Answer is complete but not entirely correct. Maximum…Lamothe Solutions is a management consulting firm. Its Business Division advises firms on the adoption and use of financial systems. Civic Division consults with state and local governments. Civic Division has a client that is interested in implementing a new costing system in its public works department. The division's head approached the head of Business Division about using one of its associates. Corporate Division charges clients $815 per hour for associate services, the same rate other consulting companies charge. The Civic Division head complained that it could hire its own associate at an estimated variable cost of $415 per hour, which is what Business pays its associates. Required: a. What is the maximum price that Civic Division should pay? b. What is the maximum transfer price that Business Division should obtain for its services, assuming that it is operating at capacity? c-1. Is there any change in maximum price as indicated in part (a), if Business Division had idle…
- Job Order Cost Accounting for a Service Company The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 40% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $86,800 Take Off Airlines 26,000 Sleepy Tired Hotels 60,800 Tastee Beverages 37,300 Total $210,900 During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Direct Labor Media Purchases Vault Bank $57,800 $232,800…Job Order Cost Accounting for a Service Company The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the başis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 50% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $68,700 Take Off Airlines 20,600 Sleepy Tired Hotels 48,100 Tastee Beverages 29,500 Total $166,900 During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Direct Labor Media Purchases Vault Bank $46,100 $173,800…Job Order Cost Accounting for a Service Company The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 60% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $72,500 Take Off Airlines 21,800 Sleepy Tired Hotels 50,800 Tastee Beverages 31,200 Total $176,300 During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Direct Labor Media…
- I need help solving the following problem. Elizabeth Flanigan and Associates is an engineering and design firm that specializes in developing plans for recycling plants for municipalities. The firm uses a job costing system to accumlate the cost associated with each design project. Flanigan employs three levels of employee: senior engineers, associate engineers, and clerical staff. The salary cost of the clerical staff is included in overhead, along with the cost of engineering supplies, automobile travel, and equipment depreciation. The cost of airline travel, motels, building permits, and fees from other consultants is charged to each project as direct materials. Overhead is applied to projects using a predetermined overhead rate based on total engineering hours. The rate for 20X0 is $5 per hour. The six different salary levels for 20X1 for the employees of Elizabeth Flanigan and Associates are listed below. The hourly rate is determined by dividing the yearly salary by 2,000…Ethics Case. At Symond Company, production workers in the Painting Department are paid on the basis of productivity. The labor time standard for a unit of production is established through periodic time studies conducted by Douglas Management Consultants. In a time actual time required to complete a specific task by a worker is observed. Allowances are then made for preparation time, rest periods, and cleanup time. Bill Carson is one of several veterans in the Painting Department .Bill is informed by Douglas that he will be used in the time study for the beginning of a new product . The findings will be the basis for establishing the labor time standard of the next 6 months.During the test, Bill deliberately slows his normal work pace in an effort to obtain a labor time standard that will be easy to meet. Because it is a new product, the Douglas representatives who conducted the test is unaware that Bill did not give the test his best effort.Sutton Construction Inc is a privately held, family founded corporation on that builds single and multiple - unit housing. Most projects sutton Construction undertakes involve the construction of multiple units. Sutton Construction has adopted a job order costing system for determining the cost of each unit. The costing system is fully computerized. Each project's costs are divided into following five categories: 1. General conditions, including construction site utilities, project insurance permits and licenses, architect fees, decorating, field office salaries, and clean up costs 2. Hard costs, such as subcontractors, direct materials and direct labor 3. Finance costs, including title and recording fees, inspection fees, and taxes and discounts on mortgages 4. Land costs, which refer to the purchases price of the construction site 5. Marketing costs, such as advertising, sales commisions, and appraisal fees Recently, sutton corporation purchased land for the purposes of developing 20…