Swifty and Ellie's Painting Service estimates that it will paint 15 small homes, 9 medium homes, and 1 large homes during the month of June 2022. The company estimates its direct labor needs as 40 hours per small home, 77 hours for a medium home, and 130 hours for a large home. Its average cost for direct labor is $26 per hour. Prepare a direct labor budget for Swifty and Ellie's Painting Service for June 2022. Small Swifty and Ellie's Painting Service Direct Labor Budget Medium Large

Swifty and Ellie's Painting Service estimates that it will paint 15 small homes, 9 medium homes, and 1 large homes during the month of June 2022. The company estimates its direct labor needs as 40 hours per small home, 77 hours for a medium home, and 130 hours for a large home. Its average cost for direct labor is $26 per hour. Prepare a direct labor budget for Swifty and Ellie's Painting Service for June 2022. Small Swifty and Ellie's Painting Service Direct Labor Budget Medium Large

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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Ever Clean Company provides gutter cleaning services to residential clients. Overhead is allocated based on direct labor-hours (DLH). The owner, Joanne Clark, estimates that her gutter cleaners will work a total of 1,000 jobs during the year. Each job averages 600 feet of gutter surface and requires 12 direct labor-hours. Clark pays her gutter cleaners $15 per hour. The following table presents the budgeted overhead costs for 2018: Variable costs Supplies ($6.50 per DLH) Fixed costs (to support capacity of 12,000 DLH) Indirect labor Depreciation Other Total budgeted costs The budgeted overhead rate (USD/DLH) is closest to O A. 5.50 O B. 12.00 O C. 6.50 $ 78,000 25,000 17,000 24,000 $144,000
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