Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of supplies a fixed or a variable cost? d. Determine the total expected cost of cleaning houses, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. e. Determine the average expected cost per house, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month.

Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. Is the cost of supplies a fixed or a variable cost? d. Determine the total expected cost of cleaning houses, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month. e. Determine the average expected cost per house, assuming that Jordan Cleaning cleans 25, 35, or 45 houses during one month.

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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Angler Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Direct labor hours Machine hours Overhead costs Multiple Choice O $15.60. O Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.4 machine hours in the Assembly Department, and 4.0 direct labor hours and 0.6 machine hours in the Finishing Department? $3.40 Assembly 190,000 DLH 390,000 MH $16.10. $ 390,000 Finishing) 149,000 DLH: 95,550 MH $ 581,100
Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter G-09 19,400 $7 4 144 Machine depreciation Setup labor Materials handling Total Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: G-35 3,880 $ 19 7 72 $184,760 52,380 41,904 $ 199,044 Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg.
Test VII. High and Low Points Method. A controller is interested in analyzing the fixed and variable costs of indirect labor as related to direct labor hours. The following data have been accumulated: Indirect Direct Labor Labor Cost $2,880 3,256 2,820 3,285 3,200 3,200 Month March. Hours 425 Аpril May June. July . August. 545 440 560 540 495 Requirement: Determine the amount of the fixed portion of indirect labor expense and the variable rate for indirect labor expense, using the high and low points method.
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All are examples of a conversion cost EXCEPT: a. All the examples given are conversion costs Ob. The salary of the production manager in a factory. Oc. The rent cost of the factory. С. d. The salary of the electrician who installs the power board inside a tv. e. The carton boxes for packing milk.
Write down what expenses the medicalinstitution may refer to basic, and which tothe overhead.Division of expenses into conditionally constant (constant) and conditionally variable (variables)• Conditionally fixed (fixed) costs practically do not depend on the volume of services rendered(expenses on lighting of premises, heating, etc.).The amount of fixed costs remains unchanged when the volume of services rendered (time-based wages of workers, wages and accruals for wages of administrative staff, rental of premises,etc.).• Conditionally-variable (variable) costs vary inaccordance with the volume of services rendered (costs for the purchase of medicines, supplies, food, etc.). In other words, the total amount of variable costs varies in proportion to the volume of services provided.Distribution of expenses by various sources of financing, units, types of servicesA modern medical organization has a complex structure, provides a large number of different types of services, spends numerous…
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As a new accountant of the company, you are provided with the following information related to KOKO: Product Annual production and sales unit Direct material cost per unit Direct labour cost per unit Machine hours per unit Selling price per unit Koko 5,500 RM50 RM35 3 hours RM150 The company is considering of changing the traditional method to the Activity Based Costing (ABC) method. In order to adopt ABC method the following information is required: Activity Cost Cost Driver Pool Expected overhead Expected use of drivers per product Other products 3,500 costs Коко (RM) No of purchase orders Machine hours Maintenance Maintenance hours Number of inspections Total Purchasing 4,000 37,500 Machining 16,500 8,000 1,500 147,000 43,000 3,500 Quality control 1900 1600 17,500 245,000 Required: a. If the company decided to use the Activity Based Costing (ABC) method, determine the cost per unit of KOKO. Based on your answer in (a), advise whether the company should change to ABC method. Support…
Fanning Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Direct labor Direct materials Fringe Benefits: Home 1 2 Assume Fanning needs to allocate two major overhead costs ($34,600 of employee fringe benefits and $25,740 of indirect materials costs) among the three jobs. 3 Total Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. Note: Round "Allocation rate" to 2 decimal places. Indirect Materials: Home 1 2 3 Total Expected Costs Direct labor Direct materials Fringe benefits Indirect materials Allocation Rate Total cost Home 1 $ 71,000 92,000 $ $ $ 0.10 0.10 0.10 Allocation Rate X $ 71,000 X X X x X Home 2 $ 99,000 141,000 x X Weight of Base The cost components to determine the total cost of each house: Home 1 Home 2 $ 71,000 $ 71,000 $ 99,000 $ 176,000 Weight of Base Home 3 $ 176,000 196,000 $ 0 = = =…
Productivity is best described as a. The output produced by the average worker in an hour b. The number of hours the average worker spends at the job c. The percentage of the population that is working d. GDP per capita