Data table201920201. Number of jobs billed4506002. Selling price per job3,500 $3,3003. Engineering labor-hours27,00030,0004. Cost per engineering labor-hour39 $405. Engineering support capacity (number of jobs the firm can do)7507506. Total cost of engineering support (space rent, equipment, etc.)$210,000 $247,5007. Engineering support-capacity cost per job$280 $330PrintDone%24 McCarty Associates is a construction engineering firm that prepares detailed construction drawings for single-familyhomes. The market for this service is very competitive. To compete successfully McCarty must deliver quality service atlow cost. McCarty presents the following data for 2019 and 2020.(Click the icon to view the data.)Engineering labor-hour costs are variable costs. Engineering support costs for each year depend on theengineering support capacity that McCarty chooses to maintain each year (that is, the number of jobs it can doeach year). Engineering support costs do not vary with the actual number of jobs done in a year.Read the requirements.Requirement 1. Calculate the amount and cost of unused engineering support capacity at the beginning of 2020, based on the number of jobs actually done in 2020.The amountunused capacity isjobs and the cost of unused capacity isRequirement 2. Suppose McCarty can add or reduce its engineering support capacity in increments of 50 jobs. What is the maximum amount of costs that McCarty could save2020 by downsizing engineering support capacity?McCarty can reduce engineering support capacity byfor a cost savings ofThis is theamount of costs McCarty can save by downsizing in 2020. Itreduce capacity further (by another50 jobs) becausewouldcapacity to do thejobs in 2020.Requirement 3. McCarty,fact, does not eliminate any of its unused engineering support capacity. Why might McCarty not downsize?McCarty may have chosen not to downsize because it projects salesV in the near term that would lead toV demand for and utilization of capacity. McCarty may have also decided not to downsize because downsizing requiresreductioncapacity and capability of the organization. Not reducing significant capacity by laying off employeesV morale and

It is the costing system in which cost is assigned to specific jobs and products. This systems helps…

McCarty Associates is a construction engineering firm that prepares detailed construction drawings for single-family homes. The market for this service is very competitive. To compete successfully McCarty must deliver quality service at low cost. McCarty presents the following data for 2019 and 2020.

McCarty Associates is a construction engineering firm that prepares detailed construction drawings for single-family homes. The market for this service is very competitive. To compete successfully McCarty must deliver quality service at low cost. McCarty presents the following data for 2019 and 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Prepare the journal entries for Sunland in 2017. Sunland Windows manufactures and sells custom storm windows for three-season porches. Sunland also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sunland enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,490 and chooses Sunland to do the installation. Sunland charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $590. The customer pays Sunland $1,950 (which equals the standalone selling price of the windows, which have a cost of $1,110) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Sunland completes installation on October 15, 2017, and the customer pays the…
Value engineering, target pricing, and locked-in costs. Sylvan Creations designs, manufactures, and sells modern wood sculptures. Sandra Johnson is an artist for the company. Johnson has spent much of the past month working on the design of an intricate abstract piece. Jim Chase, product development manager, likes the design. However, he wants to make sure that the sculpture can be priced competitively. Ellen Cooper, Sylvan’s cost accountant, presents Chase with the following cost data for the expected production of 75 sculptures:
Patterson Lawn Co. wants to determine the cost of each lawn care maintenance job. The Company has two operating departments, one that performs lawn care services for commercial properties and one that services residential properties. Both operating departments are supported by two service departments, administrative and machine maintenance. Costs for each of these supporting departments are as follows: Administrative Machine Maintenance Total cost $576,000 $3,825,000 The following estimates that are related to the operating departments is as follows: Commercial Residential Total properties properties # of employees 68 60 128 # of customers 225 260 485 # of billable hours 23,000 22,000 45,000 Total overhead cost* $ 525,000 $ 450,000 $ 975,000 *Note that total overhead cost includes costs allocated from service departments and other overhead costs. The Company uses the…
Current Attempt in Progress Lee Enterprises reports the following information: Net income Depreciation expense Increase in accounts payable Increase in accounts receivable $5180000 $3979520. $5180000. $6380480. $5706480. 704480 159000 337000 Lee should report cash provided by operating activities of
Munabhai
Talon Services offers standardized job counseling services. The company is planning a new service line targeted to active seniors who are retiring and looking forward to a new career. The service will sell for a flat $971 per client and will consist of a standardized offering. The service will consist of a total of 9 hours with a counseling specialist and a battery of tests to assess interests and aptitudes. Counseling specialists, who are contract employees, are paid $34 per hour. The testing is estimated to cost $131 per client. Administrative costs for the new service have not been estimated, but the company has collected Information on counseling hours and administrative costs for other services over the past 15 months. The following is a summary of a simple regression of administrative costs on counseling hours: Simple Regression Analysis Results Dependent variable-Administrative costa (monthly) Independent variable-Counseling hours (monthly) Computed values Intercept Coefficient…
The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. Show the comparisons and internal rates of return used to make your decision:
Queen's Move plc specializes in household removals and storage services. The business runs its own fleet of removal vehicles and also has freehold premises used for storage in many major towns and citios. The directors are undertaking an exercise to identify the principal cost pools and drivers in both aspects of the business with a view to implementing ABC on a two-year trial basis Which option below is the correct one for an activity pool? O booking of a removal by a customer O Premises costs (for housing the fleet of vehicles) O occupation of space by goods stored O number of milos driven
The Vest School of Vocational Technology has organized the school training programs into three departments. Each department provides training in a different area as follows: nursing assistant, dental hygiene, and office technology. The school's owner, Candice Vest, wants to know how much it cost to operate each of the three departments. To accumulate the total cost for each department, the accountant has identified several indirect costs that must be allocated to each. These costs are $10,080 of telephone expense, $2,016 of supplies expense, $720,000 of office rent, $144,000 of janitorial services, and $150,000 of salary paid to the dean of students. To provide a reasonably accurate allocation of costs, the accountant has identified several possible cost drivers. These drivers and their association with each department follow. Cost Driver Department 1 Department 2 Department 3 Number of telephone 28 16 19 Number of faculty members 20 16 12 Square footage of office space 28,000 16,800…
Help determine the selling price to retailers in 2020. And answer the more info section after finding the selling price please.
Alter's Home Center (AHC) sells renovation and remodeling products to both contractors and individual home owners. One of the services AHC offers is delivery of the purchased products to the customer's work site. Because not all customers take advantage of the delivery service option, ACH adds 10 percent to the cost of the products purchased to cover the delivery cost. A business intern spent the summer at ACH. The intern's assignment was to analyze the delivery service and recommend a better way to charge customers for using it. The intern, who had studied activity-based costing, identified the following activities and the data related to them: Activity Cost Driver Annual Cost Annual Driver Volume Picking order Number of items $ 330,750 367,500 items Delivering order Number of orders 942,500 32,500 orders Handling complaints Number of complaints 32,500 125 complaints Total delivery cost $ 1,305,750 The intern selected two customers, who were frequent customers,…
Hello question is attached. Thanks