Exercises9. In Auditing Company there are 10 workers whose working time can be allocatedto the commissions. Their annual salaries and social costs are as follows:AuditorAccountantAssistantDirect costs2 * 56 000 = 112 0005 * 43 000 = 215 0003 * 24 000 = 72 000399 000The indirect costs per year are 189 000 euros and the expected profit per year20 000 euros.Yearly working time is 1496 hours/worker.a)How much is the overhead rate 1 ?b)How much is the overheat rate 2 ?c)How much should the price (with VAT) of a commission be, if it takes timeas follows:AuditorAccountantAssistant2 hours8 hours3 hours

To solve the problem, we need to go through the following steps for each question: a) How much is…

Answered: Exercises 9. In Auditing Company there…

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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Compton Information Services, Inc., has two service departments: human resources and billing. Compton's operating departmen organized according to the special industry each department serves, are health care, retail, and legal services. The billing depart supports only the three operating departments, but the human resources department supports all operating departments and th billing department. Other relevant information follows. Number of employees Annual cost* Annual revenue Req A1 Billing Human Resources 10 $720,000 $1,428,000 $6,000,000 Department Req A2 Health Care Retail Legal Services Total Complete this question by entering your answers in the tabs below. Req B1 *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company the number of employees as the base for allocating human resources department costs and department annual revenue as…
Vaughn Security Inc. provides security guard services to shopping malls. Data related to Vaughn's overhead costs for the current year are as follows: Head Office Activity Total Overhead Cost Supervision Technology fees Rent/Utilities/Taxes Total Cost Driver Activity. $133000 # of employees 70 62000 computer hours 2000 40000 direct labour hours 160000 $235000 During the year, Vaughn provided security services to the Cullumber Creek Mall including 3 employees, 120 computer hours and 10400 labour hours. Overhead applied to the Cullumber Creek Mall job for the year using ABC is O $9420.00. ○ $6320.00. ○ $12020.00. ○ $1931.25.
A professional services firm has been analysing the cost of collecting management information by using its employees' hourly charge-out rates to estimate the costs of different activities. The firm has calculated that the following costs have been incurred during the last month: Staff completing timesheets Managers analysing costs incurred on assignments compared to fees agreed with clients Credit control team updating the receivables ledgers to write off bad debts 5,000 3,000 500 Using the information provided, what are the firm's direct data capture costs for the last month? - $500 $5,000 $8,000 $8,500
Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year. BudgetedActual Overhead cost$1,333, 2005 1, 307, 200Machine hours56, 30049, 000Direct labor hours101, 00097, 800Overhead is applied on the basis of direct labor hours. (a) Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rateSper direct labor hour
Hi, I am wondering how to solve this and what the answer would be.Thank you
Subject: acounting
Which of the following accounts decrease?
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AM is a trading entity. Purchases are on credit, with 70% paid in the month following the date ofpurchase and 30% paid in the month after that.Sales are partly on credit and partly for cash. Customers who receive credit are given 30 days topay. On average 60% pay within30 days, 30% pay between 30 and 60 days and 5% pay between60 and 90 days. The balance is written off as irrecoverable. Other overheads, including salaries,are paid within the month incurred.AM plan to purchase new equipment at the end of June 2015, the expected cost of which isP250,000. The equipment will be purchases on 30 days credit, payable at the end of July.The cash balance on 1 May 2015 is P96,000.The actual/budgeted figures for the six month to July 2015 were: ACTUAL BUDGETED FEB P000 MARCH P000 APRIL P000 MAY P000 JUNE P000 JULY P000 Credit sales 100 100 110 110 120 120 Cash sales 30 30 35 35 40 40 Credit Purchases 45 50 50 55 55 60 other overhead expenses 40 40 40 50 50 50 Required:a.…
QUESTION 3 Samuel, Marcus, James and Associates is a small law firm that employs 10 partners and 12 support persons. The firm uses a job-order costing system to accumulate costs chargeable to each client, and it is organised into two departments the Research and Documents Department and the Litigation Department. The firm uses predetermined overhead rates to charge the costs of these departments to its clients. The pre-determined overhead rate in the Research and Document Department is based on research hours, and the rate in the Litigation department is based on direct attorney cost. The costs charged to each client are made up of three elements: legal forms and supplies used, direct attorney cost incurred, and an applied amount of overhead from each department in which work is performed in the case. At the beginning of the year, the firm's management made the following estimates for the year. Department Research and Documents Litigation Research-hours 24,000 Direct attorney-hours…

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