Calculate the predetermined overhead allocation rate Kendrick Consulting is a consulting firm. The firm expects to have$52,800 in indirect costs during the year and bill customers for 7,200hours. The cost of direct labor is $72 per hour.1. Calculate the predetermined overhead allocation rate for KendrickConsulting.2.Kendrick completed a consulting job for Peter Johnson and billed thecustomer for 16 hours. What was the total cost of the consulting?3. If Kendrick wants to earn a profit equal to 75% of the cost of a job,how much should the company charge Mr. Johnson?

Explanation of Indirect Costs: These are costs that cannot be directly traced to a specific…

Answered: Kendrick Consulting is a consulting…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 2TP: You are a management accountant for Time Treasures Company, whose company has recently signed an...

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Nimbus Financial Services expects its accountants to work 30,000 direct labor hours per year. The company's estimated total indirect costs are $275,000. The direct labor rate is $80 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Nimbus performs a job requiring 25 hours of direct labor, what is the total job cost? solve this
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Nimbus Financial Services expects its accountants to work 30,000 direct labor hours per year. The company's estimated total indirect costs are $275,000. The direct labor rate is $80 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Nimbus performs a job requiring 25 hours of direct labor, what is the total job cost? Answer
What is the total job cost?
Can you please solve these accounting problem?
Calculate predetermined overhead for wilson consulting?
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Wilson Consulting is a consulting firm. The firm expects to have $60,000 in indirect costs during the year and bill customers for 8,000 hours. The cost of direct labor is $80 per hour. Calculate the predetermined overhead allocation rate for Wilson Consulting.
What will be overhead rate per hour?
Suppose that an accounting firm with 10 employees hires another accountant. Bydoing so, it goes from serving 30 customers each week to serving 32 customerseach week. What is the marginal product of labor for the new accountant?
Lisa Claussen, CPA, pays her new staff accountant, Gina, a salary equivalent to $27 per hour while Lisa receives a salary equivalent to $39 per hour. The firm's predetermined indirect cost allocation rate for the year is $16 per hour. Claussen bills for the firm's services at 25% over cost. Assume Lisa works 1 hours and Gina works 16 hours preparing a tax return for Mikayla Jones. 1. What is the total cost of preparing Jones's tax return? 2. How much will Lisa bill Jones for the tax work? 1. What is the total cost of preparing Jones's tax return? Enter the direct and indirect costs for preparing Jones's tax return. Direct Cost: Lisa's time Direct Cost: Gina's time Total Direct Cost: Indirect Cost: Total cost of preparing tax return hrs. hrs. hrs.
Using ABM in a service company Haworth Company is a management consulting firm. The company expects to incur $167,500 of indirect costs this year. Indirect costs are allocated based on the following activities: Haworth bills clients at 120% of the direct labor costs. The company has estimated direct labor costs at $240 per hour. Last month, Haworth completed a consulting job for Client 76 and used the following resources: Determine the total cost of the consulting job and the operating income earned.

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