Peters Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2024, managing partner Jane Peters prepared the following budget for the year: (Click the icon to view the prepared budget.) (Click the icon to view additional information.) Read the requirements. (...) Requirement 1. Compute Peters Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate. Begin with (a) hourly direct labor cost rate. Direct labor cost rate per hour Data table Direct labor hours (professionals) Direct labor costs (professionals) Office rent Support staff salaries Utilities $ 12,750 hours 2,550,000 380,000 1,397,500 390,000 - X

Peters Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2024, managing partner Jane Peters prepared the following budget for the year: (Click the icon to view the prepared budget.) (Click the icon to view additional information.) Read the requirements. (...) Requirement 1. Compute Peters Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate. Begin with (a) hourly direct labor cost rate. Direct labor cost rate per hour Data table Direct labor hours (professionals) Direct labor costs (professionals) Office rent Support staff salaries Utilities $ 12,750 hours 2,550,000 380,000 1,397,500 390,000 - X

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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What approaches might be used to decide the sequence in which to allocate support departments when using the step-down method?
Coronado Consulting provides weekly payroll processing for a number of small businesses. Gia Coronado, the company's owner, has been using an activity-based costing system for several years. She used the following information in preparing this year's budget. Activity Cost Pool Total Cost Cost Driver Expected Driver Volume Setting up new employees $ 91,250 Number of new employees 500 Processing weekly payroll $ 950,000 Number of paychecks printed 2,500,000 Weekly reporting $ 374,000 Number of clients 200 Annual tax reporting $ 280,000 Number of W-2s printed 80,000 (a) Your answer is correct. Calculate the cost rates for each activity cost pool. (Round answers to 2 decimal places, e.g. 15.25.) Cost Pool Activity Rate 182.5 /new employee Setting up new employees $ .38 /check Processing weekly payroll 1870 /client Weekly reporting $ 3.5 | /W-2 Annual tax reporting %24 %24 %24 %24
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Expo manufacturing has two production departments and two support departments. The number of employees for each department is as follows: $35,378 O $28,940 Human Resources Accounting Machining Producing Assembly Producing Human Resources shows a budget of $21,000 and accounting, $98,000, for the coming year. Support department costs are allocated on the basis of the number of employees. How much in total support costs would be allocated to assembly, using the step method? The Accounting department is allocated first. $119,000 $34,867 5 10 520 220
Mayer, Inc., asks for your help in regards to its analysis of its variable and fixed overhead costs for October 2021. The information fo the October 2021 overhead expenditures is as follows: Budgeted output units Budgeted total fixed overhead Budgeted variable overhead 3,200 $ 20,800 $5.00Per DLH Budgeted direct labor hours Hours per 2.0unit Actual fixed overhead costs incurred $ 23,000 Actual direct labor hours incurred 7,200 Variable overhead costs incurred Actual units manufactured Actual units sold S 37,500 3,400 3,200 Required: Compute a 4-variance analysis, for manufacturing overhead, for the plant controller.
Statler Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2021. The following cost and other data were gathered for 2020: (Click the icon to view the cost and other data) Read the requirements. Requirement 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. Cost function Mixed Fixed Variable Cost Maintenance Health insurance Shipping costs Requirement 2. Using the high-low method, determine the cost function for each cost. Begin by selecting the general formula that represents the linear cost function for each cost. y = a +bX y = a y = bX Maintenance Health insurance Shipping costs Now determine the cost function for each cost. (Enter all values in the same format as the general linear formula. If an input field is not used in the Cost function Maintenance Explanation The cost neither remains constant in total nor remains constant per unit. Although the cost driver varies from month to month, the total…
Ayayai Company's organization chart includes the president; the vice president of production; three assembly factories-Dallas, Atlanta, and Tucson; and two departments within each factory-Machining and Finishing. Budget and actual manufacturing cost data for July 2022 are as follows. Finishing Department-Dallas: direct materials $52,700 actual, $54,560 budget; direct labor $103,416 actual, $101,680 budget; manufacturing overhead $63,240 actual, $61,008 budget. Machining Department-Dallas: total manufacturing costs $272,800 actual, $271,560 budget. Atlanta factory: total manufacturing costs $525,760 actual, $520,800 budget. Tucson factory: total manufacturing costs $612,808 actual, $615,660 budget. The Dallas factory manager's office costs were $117,800 actual and $114,080 budget. The vice president of production's office costs were $163,680 actual and $161,200 budget. Office costs are not allocated to departments and factories. (a) (b) Prepare the reports in a responsibility system…
Current Attempt in Progres Bramble Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2022. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor hours. The master overhead budget was prepared in the expectation that 475, 800 direct labor hours will be worked during the year. In June, 39,800 direct labor hours were worked. At that level of activity, actual costs were as shown below. Variable - per direct labor hour: indirect labor $0.48, indirect materials $0.49, factory utilities $0.34, and factory repairs $0.27. Fixed: same as budgeted (a) Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2022, assuming production levels range from 44,200 to 57, 100 direct labor hours. Use increments of 4,300 direct labor hours. (List variable costs…
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asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,000+ $0.19 per machine-hour $38,900 $1.30 per machine-hour $0.40 per machine-hour $94,000+ $1.20 per machine-hour $67,500 Actual Cost in March $ 22,390 Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. $60,000 $ 8,200 $120, 100 $ 69,200 During March, the company worked 19,000 machine-hours and produced 13,000 units. The company had originally planned to work 21,000 machine-hours during March.
Fey Company's organization chart includes the president; the vice president of production; three assembly factories- Dallas, Atlanta, and Tucson; and two departments within each factory-Machining and Finishing. Budget and actual manufacturing cost data for July 2022 are as follows. Finishing Department-Dallas: direct materials $42,500 actual, $44,000 budget; direct labor $83,400 actual, $82,000 budget; manufacturing overhead $51,000 actual, $49,200 budget. Machining Department-Dallas: total manufacturing costs $220,000 actual, $219,000 budget. Atlanta factory: total manufacturing costs $424,000 actual, $420,000 budget. Tucson factory: total manufacturing costs $494,200 actual, $496,500 budget. The Dallas factory manager's office costs were $95,000 actual and $92,000 budget. The vice president of production's office costs were $132,000 actual and $130,000 budget. Office costs are not allocated to departments and factories. (a) Your answer is partially correct. Prepare the reports in a…