The consulting firm Sheridan Financial employs 48 full-time staff. The estimated compensation per employee is $107,300 for 1,850 hours. It charges all direct labour costs to clients. It includes any other costs in a single indirect cost pool and allocates them based on labour hours. Actual indirect costs were $854,200. Estimated indirect costs for the coming year are $1,510,000. The firm expects to have 78 clients in the coming year. (a) Your answer is incorrect. Determine the overhead rate per direct labour hour. (Round anwer to 2 decimal places, e.g. 2.25.)
The consulting firm Sheridan Financial employs 48 full-time staff. The estimated compensation per employee is $107,300 for 1,850 hours. It charges all direct labour costs to clients. It includes any other costs in a single indirect cost pool and allocates them based on labour hours. Actual indirect costs were $854,200. Estimated indirect costs for the coming year are $1,510,000. The firm expects to have 78 clients in the coming year. (a) Your answer is incorrect. Determine the overhead rate per direct labour hour. (Round anwer to 2 decimal places, e.g. 2.25.)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 2CE: Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each...
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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