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More info Haberman also received a phone call from Bruschi's only other client, Marble Inc. which was very pleased with both the quality of the work and the price charged or ich

More info Haberman also received a phone call from Bruschi's only other client, Marble Inc. which was very pleased with both the quality of the work and the price charged or ich

FINANCIAL ACCOUNTING
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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PLEASE ANSWER ALL THE REQUIREMENTS AND SHOW ALL WORK FOR THUMBS UP! THANK YOU!

 

More info Haberman also received a phone call from Bruschi's only other client, Marble Inc., which was very pleased with both the quality of the work and the price charged on its most recent job. Bruschi Associates operates at capacity and uses a cost-based approach to pricing (billing) each job. Currently it uses a simple costing system with a single direct-cost category (professional labor-hours) and a single indirect-cost pool (general support). Indirect costs are allocated to cases on the basis of professional labor-hours per case. The job files show the following: Parker Enterprises 2,900 hours Marble Inc. 2,100 hours Professional labor Professional labor costs at Bruschi Associates are $220 an hour. Indirect costs are allocated to cases at $105 an hour. Total indirect costs in the most recent period were $525,000.
Transcribed Image Text:More info Haberman also received a phone call from Bruschi's only other client, Marble Inc., which was very pleased with both the quality of the work and the price charged on its most recent job. Bruschi Associates operates at capacity and uses a cost-based approach to pricing (billing) each job. Currently it uses a simple costing system with a single direct-cost category (professional labor-hours) and a single indirect-cost pool (general support). Indirect costs are allocated to cases on the basis of professional labor-hours per case. The job files show the following: Parker Enterprises 2,900 hours Marble Inc. 2,100 hours Professional labor Professional labor costs at Bruschi Associates are $220 an hour. Indirect costs are allocated to cases at $105 an hour. Total indirect costs in the most recent period were $525,000.
Requirements 1. Why is it important for Bruschi Associates to understand the costs associated with individual jobs? 2. Compute the costs of the Parker Enterprises and Marble Inc. jobs using Bruschi's simple costing system.
Transcribed Image Text:Requirements 1. Why is it important for Bruschi Associates to understand the costs associated with individual jobs? 2. Compute the costs of the Parker Enterprises and Marble Inc. jobs using Bruschi's simple costing system.
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