Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 50 of direct labor cost. Direct Labor on Tax Job Partner Senior manager Staff accountants Direct labor type Hours Used Total direct labor cost Overhead Estimated Applied Overhead Total cost 5 14 90 1. Determine the total cost of this tax services job. Estimated Cost Hourly Rate $ 550 210 70 Hours used Hourly rate OH Base Labor Cost OH rate Total Cost 2. If Diaz charged $23,000 for this tax services job, what is the gross profit for the job? Gross Profit

Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 50 of direct labor cost. Direct Labor on Tax Job Partner Senior manager Staff accountants Direct labor type Hours Used Total direct labor cost Overhead Estimated Applied Overhead Total cost 5 14 90 1. Determine the total cost of this tax services job. Estimated Cost Hourly Rate $ 550 210 70 Hours used Hourly rate OH Base Labor Cost OH rate Total Cost 2. If Diaz charged $23,000 for this tax services job, what is the gross profit for the job? Gross Profit

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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ARE YOU RIGHT OR WRONG? 1. Ideally, each salary check was handed to the employee, who signs a receipt for it. 2. The total revenue taxes deducted from an employee's gross compensation is a business expenditure. 3. The Task in Process account is debited for the amount of direct labour (at normal rate) invoiced to the various works in progress.
Rob is a quality inspector on the assembly line of a manufacturing company. He is paid P16 perhour for regular time and time and a half for all work in excess of 40 hours per week. He isclassified as a direct labor worker. Rob's employer offers fringe benefits that cost the company P4 for each hour of employeetime (both regular and overtime). During a given week, Rob works 45 hours but is idle for 2hours due to material shortages. The company treats all fringe benefits relating to direct labor asadded direct labor cost and the remainder as part of manufacturing overhead. How much of the worker's wages for the week would be classified as manufacturing overheadcost?
Benson Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Direct labor Home 1 Home 2 Home 3 $ 99,000 134,000 $ 68,000 $189,000 187,000 Direct materials 108,000 Assume Benson needs to allocate two major overhead costs ($53,400 of employee fringe benefits and $25,740 of indirect materials costs) among the three jobs. Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. (Round "Allocation rate" to 2 decimal places.)
during my practicum internship i was given the task to do Preparation of payroll . what will be my duties and responsibility? with in text citation and references
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $6,500 for direct materials, $9, 700 for direct labor, and S 7,081 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4, 200 for direct materials and $4, 200 for direct labor. Required: 1a. Should any overhead cost be applied to Job Wat year-end? 1b. How much overhead cost should be applied to Job W? 2. How will the costs included in Job W's job cost sheet be reported within Sigma Corporation's financial statements at the end of the year?
Avett Manufacturing Company allows employees to purchase materials, such as metal and lumber, 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 Dadian, an assistant cost accountant, then charges the employee an amount based on Avett's net purchase cost. Brian is in the process of replacing a deck on his home and has requisitioned lumber 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 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, and responsibility. These…
John Smith, a junior accountant at Dynamics Engineering was working on cost allocations to completed jobs for the month. The cost sheet for GOVT360 showed 100 hours of direct labor. John's supervisor altered the job cost sheet to allow for 150 hours that increased both the direct labor and overhead cost for the job. When John asked about this, his supervisor stated that because this was a government job, it was billed at "cost +" so the more costs allocated to the job, the more profit Dynamics Engineering would make. She also stated that the excess hours would cover follow-up work on the job. Discuss Dynamics Engineering costing procedures. Why does overhead cost increase when direct labor hours increase? Discuss John Smith's responsibilities considering the IMA's statement of professional conduct. What are his responsibilities with respect to the 4 standards of ethical conduct? What are the steps John should take in resolution of the ethical conflict (use the IMA's resolution of…
Mr. Abdul is a general manger of Al Nizwa Production LLC. Mr. Abdul has provided the following cost data from the cost sheet of a job and requested you to determine the percentage of profit to cost. Direct Material RO 6,000, Production overheads RO 4,000, General Overheads RO 7,000, Distribution Overhead RO 4,000, Direct expenses RO 4,000, and Sales Value RO 30,000. a. 61.67% b. 2.00% c. 20.00% d. 16.67%
Mr. Abdul is a general manger of Al Nizwa Production LLC. Mr. Abdul has provided the following cost data from the cost sheet of a job and requested you to determine the percentage of profit to cost. Direct Material RO 6,000, Production overheads RO 4,000, General Overheads RO 7,000, Distribution Overhead RO 4,000, Direct expenses RO 4,000, and Sales Value RO 30,000. a. 61.67% b. 2.00% C. 20.00% d. 16.67%
The Brass Works is in the process of determining manufacturing overhead. Journalize events (a) (d) to Factory Overhead, Administrative Expenses, Selling Expenses, or allocated between the three as appropriate. The insurance policy and electric bill were paid in cash at the time of acquisition. Next calculate the overhead application rate and apply overhead to Work in Process. a. Brass Works purchases an insurance policy for $4,000. It is computed that 80% of the value of the policy protects production, the balance protects the administrative offices. Brass Works charges insurance initially to expense. If an amount box does not require an entry, leave it blank.
At the end of the year, the company had actually incurred the following: attached in 2 ss's below thanks
The following information is available for Wonderway, Incorporated, for the current year: Factory rent Company advertising Wages paid to laborers Depreciation for president's vehicle Indirect production labor Utilities for factory Production supervisor's salary President's salary Direct materials used Sales commissions Factory insurance Depreciation on factory equipment $ 29,300 20,800 85,200 8,050 1,880 31,900 30,700 60,800 34,900 7,530 13,100 26,500 Required: 1. Calculate the direct labor cost for Wonderway. 2. Calculate the manufacturing overhead cost for Wonderway. 3. Calculate the prime cost for Wonderway. 4. Calculate the conversion cost for Wonderway. 5. Calculate the total manufacturing cost for Wonderway. 6. Calculate the period expenses for Wonderway. 4