ASSIGNMENtheir maximum 1,500 billable hours available. All professional labor costs are included in a single direct-costcategory and are traced to jobs on a per-hour basis. All costs of Kidman & Associates other than profes-sional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jabs usingprofessional labor-hours as the allocation base. The budgeted level of indirect costs in 2017 is $2,475,000.1. Prepare an overview diagram of Kidman's job-costing system.2. Compute the 2017 budgeted direct-cost rate per hour of professional labor.3. Compute the 2017 budgeted indirect-cost rate per hour of professional labor.4. Kidman & Associates is considering bidding on two jobs:a. Litigation work for Richardson, Inc., which requires 120 budgeted hours of professional laborb. Labor contract work for Punch, Inc., which requires 160 budgeted hours of professional labor.Prepare a cost estimate for each job.Jou firm Iocontinua- Compute the total manufacturing overhead cost allocated tô4. Assuming that Job 431 consisted of 400 units of product, what is the cost per unit?5. Amounts at the end of 2017 are as follows:Machining Department$13,250,000Finishing Department$8,400,000Manufacturing overhead incurredDirect manufacturing labor costs$ 1,000,000$4,300,000Machine-hours250,00030,000Compute the under- or overallocated manufacturing overhead for each department and for the Doverplant as a whole.6. Why might Solomon use two different manufacturing overhead cost pools in its job-costing system?4-37 Service industry, job costing, law firm. Kidman & Associates is a law firm specializing in laborrelations and employee-related work. It employs 30 professionals (5 partners and 25 associates) who workdirectly with its clients. The average budgeted total compensation per professional for 2017 is $97,500. Eachprofessional is budgeted to have 1,500 billable hours to clients in 2017. All professionals work for clients to

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their maximum 1,500 billable hours available. All professional labor costs are included in a single direct-cost category and are traced to jobs on a per-hour basis. All costs of Kidman & Associates other than profes- sional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2017 is $2,475,000. 1. Prepare an overview diagram of Kidman's job-costing system. 2. Compute the 2017 budgeted direct-cost rate per hour of professional labor. 3. Compute the 2017 budgeted indirect-cost rate per hour of professional labor. 4. Kidman & Associates is considering bidding on two jobs: a. Litigation work for Richardson, Inc., which requires 120 budgeted hours of professional labor b. Labor contract work for Punch, Inc., which requires 160 budgeted hours of professional labor. Prepare a cost estimate for each job.

their maximum 1,500 billable hours available. All professional labor costs are included in a single direct-cost category and are traced to jobs on a per-hour basis. All costs of Kidman & Associates other than profes- sional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2017 is $2,475,000. 1. Prepare an overview diagram of Kidman's job-costing system. 2. Compute the 2017 budgeted direct-cost rate per hour of professional labor. 3. Compute the 2017 budgeted indirect-cost rate per hour of professional labor. 4. Kidman & Associates is considering bidding on two jobs: a. Litigation work for Richardson, Inc., which requires 120 budgeted hours of professional labor b. Labor contract work for Punch, Inc., which requires 160 budgeted hours of professional labor. Prepare a cost estimate for each job.

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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The following data are available for ABC Corp: Budgeted Overhead is 100,000; Budgeted Direct labor hours is 25,000 hours; Direct labor rate is 10 per hour; actual direct labor hours is 15,000 hours; ;raw materials used is 120,000; indirect labor of 10,000, indirect materials used of 5,000;other overhead cost of 40,000; WIP increased by 8,000 and Finished Goods decreased by 2,000. What is the cost of goods sold at normal cost? Assume that under or overapplied overhead is immaterial.
aris Company is a manufacturer with two production departments (Machining and Assembly) as well as two support departments (Materials Requisitions and Utility Services). For the last quarter of 2020, Caris’s cost records indicate the following: SUPPORT PRODUCTION Materials Requisitions (MR) Utility Services (US) Machining Assembly Total Budgeted overhead costs before any interdepartment cost allocations $400,000 $2,000,000 $9,456,000 $13,458,000 $25,314,000 Support work supplied by MR (Number of requisitions) 0 25% 40% 35% 100% Support work supplied by US (Power costs) 10% 0 30% 60% 100% Required 1. Allocate the two support departments’ costs to the two operating departments using the following method: Step-down method (allocate MR first) Step-down method (allocate US first)
Swanson Manufacturing uses activity-based management to analyze the cost of non-value-added activities across its value chain. The company's annual budgeted costs in its Human Resources Department (HR) total $5 million. This amount is allocated to 3 cost pools, as follows: (1) 20% to Hiring & Recruiting; (2) 50% to Payroll; and (3) 30% to Employee Benefits. There are 3 activity cost drivers associated with HR's 3 cost pools: (1) travel; (2) information processing; and (3) professional development. These activities drive each of HR's cost pool amounts as follows: Hiring & Recruiting Cost Pool Drivers -- 70% travel activities -- 12% information processing activities -- 18% professional development activities Payroll Cost Pool Drivers -- 10% travel activities -- 65% information processing activities -- 25% professional development activities Employee Benefits Cost Pool Drivers -- 10% travel activities -- 30% information processing activities -- 60% professional development…
10) Actual costs are: A) the costs incurred C) estimated costs B) budgeted costs d)
Since, the predetermined overhead rate and the budgeted factory overhead is given. We need to calculate the amount of the allocation base in order to know how Mystic Inc. computed its predetermined overhead rate for 2010. Equation to compute the Predetermined Overhead rate: Given: Predetermined Overhead rate = Predetermined rate: $4.25 per direct labor dollar Budgeted Factory Overhead: $1,275,000 Solution: $4.25 = ? = $300,000 = = $300,000 is the budgeted direct labor cost.
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National company has two support departments A&B and two operating departments X&Y. for the first quarter 2021, Budgeted overhead costs before any interdepartmental costs allocations were: A $800,000, B $1,500,000, X $5,000,000 and Y $11,000,000. Support work supplied by A to B 20%, to X 50% and to Y 30%. Support work supplied by B to A 25%, to X 35% and to Y 40%. Using direct method, the total cost of :department A before allocation is .a .$1,175,000 .b .$800,000 .C .$1,500,000 .d .$0
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 51,600 machine hours per year, which represents 25,800 units of output. Annual budgeted fixed factory overhead costs are $258,000 and the budgeted variable factory overhead cost rate is $2.50 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 19,500 units, which took 40,600 machine hours. Actual fixed factory overhead costs for the year amounted to $251,600 while the actual variable overhead cost per unit was $2.40. Assume that at the end of the year, management of Patel and Sons decides that the overhead cost variances should be allocated to WIP Inventory, Finished Goods Inventory, and Cost of Goods Sold (CGS) using the following percentages: 10%, 20%, and 70%, respectively. Provide the proper journal entry to close out the…
16) sector companies purchase materials and components and conve goods. A) Merchandising B) Service C) Manufacturing D) Professional
5) Hakan&Ahmet Manufacturing Company uses applied overhead rate for allocating its manufacturing overhead to its products. The following information is estimated for the upcoming year of 2024: BUDGETED COSTS AND ESTIMATED ACTIVITY LEVELS Budgeted MOH Budgeted Direct Materals Cost Budgeted Direct Labor Cost Estimated Direct Labor Hours Estimated Machine Hours AMOUNTS and HOURS $ 720,000 $ 600,000 $ 480,000 72,000 dlh 120,000 mh At the end of the first week of January 2024, the company completed only one job order. Actual costs and actual usage of dlh and mh for this unit were as follows: Job Order Direct Material Cost ($) 100 GRS-34 Direct Labor Direct Labor Cost ($) 150 Hours 15 Machine Hours 30 Q1) Calculate a predetermined manufacturing overhead rate (applied overhead rate) by using each of the cost drivers of "direct materials cost", "direct labor hours", "direct labor costs" and "machine hours". Q2) By using each of these rates, calculate the unit cost of this job order.
Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks. CB uses two direct cost categories: direct materials and direct manufacturing labour. Johnson feels that manufacturing overhead is most closely related to material usage. Therefore, CB allocates manufacturing overhead to production based upon pounds of materials used. At the beginning of 2021, CB budgeted annual production of 200,000 blocks and adopted the following standards for each block: Input Cost/Block Direct materials 0.5 Ib. @ $12/lb. $ 6.00 Direct manufacturing labour 1.4 hours @ $20/hour 28.00 Manufacturing overhead: Variable $6/lb. 0.5 Ib. 3.00 Fixed $15/lb. 0.3 Ib. 4.50 Standard cost per block $41.50 Actual results for April 2021 were as follows: Production 24,000 blocks Direct materials purchased 12,000 lb. at $13/lb. Direct materials used 11,450 lb. Direct manufacturing labour 38,000 hours for $798000 Variable manufacturing overhead $68,150 Fixed manufacturing overhead…