Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 5- of direct labor cost Direct Labor on Tax Job Hours Used Partner Senior manager Staff accountants Direct labor type 14 110 Total direct labor cost Overhead Estimated Applied Overhead Total cost Hourly Rate $ 470 1. Determine the total cost of this tax services job. Estimated Cost 190 60 Hours used Hourly rate OH Base Labor Cost OH rate Total Cost

Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 5- of direct labor cost Direct Labor on Tax Job Hours Used Partner Senior manager Staff accountants Direct labor type 14 110 Total direct labor cost Overhead Estimated Applied Overhead Total cost Hourly Rate $ 470 1. Determine the total cost of this tax services job. Estimated Cost 190 60 Hours used Hourly rate OH Base Labor Cost OH rate Total Cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.40 per machine-hour was based on a cost formula that estimates $192,000 of total manufacturing overhead for an estimated activity level of 80,000 machine-hours. Required: 1. Assume that during the year the company works only 75,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. 2B. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Compute the amount of overhead cost…
A company has an overhead application rate of 120% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $30,000? O $6.000 O $25.000 O $36,000 O $187.500 O $360.000 Question 10 O.K. Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. O.K. expects to incur $1,100,000 of overhead during the next period and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is O.K. Company's overhead application rate? O 4.55% O 45.45% O 220% O 227% O 2,200% Question 11
Two builders quote for a particular job. The first builder's estimate includes GHS 1,480 for material, GHS 3,986 for labor and GHS 4,409 for overheads. The second builder gives an estimate based on the first builder's direct costs. The second builder only includes 90% of the material costs and 70% of the labor costs. The second builder, however, used an overhead absorption rate of 37p per labor pond spent, and uses a mark up of 20% on total cost. What is the total estimated price of this project? O A. GHS 4,870 O B. GHS 5,690 O C. GHS 6,082 OD. GHS 10,162
Job Order Cost Accounting for a Service Company The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July: July 3. Charged 400 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $240 per hour. 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $14,700. 14. Charged 160 hours of professional time for the Obsidian trial at a rate of $250 per hour. July 10 July 14 a. Provide the journal entries for each of these transactions. If an amount box does not require an entry, leave it blank. July 3 July 18 18. Received invoice from consultants Wadsley and Harden for $57,000 for expert testimony related to the Obsidian trial. 27. Applied office overhead at a rate of $50 per professional hour charged to the Obsidian case. July 27 31. Paid administrative and support salaries of $19,900 for…
compute the customer level operating income of this customer for abc corporation using the companys activity based costing system
2. Len, Inc., which uses a job-costing system, began business on January 1, 20XX and appliesmanufacturing overhead on the basis of direct-labor cost. The following information relatesto 20XX:• Budgeted direct labor and manufacturing overhead were anticipated to be P200,000 andP250,000, respectively.• Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct materialand direct labor: Job No. Direct Materials Direct Labor 1 P145,000 P35,000 2 320,000 65,000 3 55,000 80,000 • Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% ofcost. Job no. 3 remained in production.• Actual…
McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $299,610 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows: Annual Salary Billable Hours Debbie $ 126,480 1,700 Tara $ 73,260 1,650 The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for Debbie's and Tara's services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 25 percent markup. Required: 1. Compute the predetermined overhead rate.. 2. Compute the hourly billing rates for Debbie and Tara.
The following accounts are from last year's books at Sharp Manufacturing: Balance Balance (g) Debit Debit Debit Raw Materials 0 (b) 170,500 13,900 Finished Goods 0 (g) 520,400 47,400 Cost of Goods Sold 473,000 Credit Credit Credit 156,600 Balance (b) (c) (c) 473,000 (b) (c) (d) Debit Debit Work In Process 0 (1) 133,300 170,600 216,500 0 Manufacturing Overhead 23,300 (e) 27,300 158,600 Credit Credit 520,400 216,500 7,300 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year?
Job number S-1000 had the following data: Direct Labor hours used: Direct Materials used: Hourly wage rate: 32 $750 $45/hr. Overhead allocation rate: $15/direct labor hr. Assuming this was the only job completed this month, what was the total cost of Job S-1000?
Cost accumulation; assigning costs to jobs The law firm of Taub & Lawson, LLP, currently has four cases in process. Following is information related to those cases as of the end of March: Case #1 Case #2 Case #3 Case #4 $864 $15,840 $6,660 $1,530 40 12 Direct material Direct labor hours Estimated court hours Taub & Lawson allocates overhead to cases based on a predetermined rate of $270 per estimated court hour. The charge for direct labor each hour is $342. Total cost $ 90 65 70 120 15 40 a. Determine the total cost assigned to each case as of March 31. Case #1 Case #2 Case #3 Case #4 3,240 x $ 17,550 * $ 32,400 x $ 10,800 × b. Case #3 was completed at the end of April. At that time, $18,180 of direct materials had been used and 174 direct labor hours had been incurred. Of the DLHs, 72 had been spent in court. Taub & Lawson's policy is to charge clients actual costs plus 45 percent. What amount will be billed to the client involved in Case #3? Note: Round your final answer to the…
Brooklyn Company produces leather bags for individual or corporates. On December 1, there were three jobs in process with the following costs attached below Questions : If overhead is applied on the basis of electricity consumed, what is the overhead rate? If overhead is applied on the basis of direct material consumed, what is the overhead rate? Please compute the overhead allocated for each job if the basis used is electricity consumed.