Videos
The U.S. Office of Management and Budget (OMB) provides guidance on the allowability of costs under federal grant agreements in Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Following is a list of costs being considered for reimbursement under a federal grant:
_____ 1. Publication costs for electronic and print media, including distribution, promotion, and general handling.
_____ 2. Alcoholic beverages purchased to host a foreign dignitary.
_____ 3. Value Added Tax (VAT) charged for the purchase of goods or services that a nonfederal entity is legally required to pay to a foreign country.
_____ 4.
_____ 5. Recruiting costs.
_____ 6. Employee dependent care costs.
_____ 7. Costs of contributions and donations.
_____ 8. Necessary and reasonable expenses incurred for security to protect facilities, personnel, and work products.
Required
For each of the costs listed, indicate with an A (allowable) if the cost is always allowable under OMB guidance, an N (nonallowable) if the cost is not allowable under OMB guidance, and an M (may be allowable) if the cost is allowable under specific circumstances. For any costs marked with an M, explain the circumstance necessary for the cost to be allowable.
Want to see the full answer?
Check out a sample textbook solution
Chapter 12 Solutions
Accounting For Governmental And Not For Profit Entities
- During its first year, Yutsang Enterprises showed a $22 per-unit profit under absorption costing but would have reported a total profit of $20,000 less under variable costing. Suppose production exceeded sales by 600 units and an average contribution margin of 58% was maintained. a. What is the fixed cost per unit? b. What is the sales price per unit? c. What is the variable cost per unit? d. What is the unit sales volume if total profit under absorption costing was $240,000?arrow_forwardWood Manufacturing uses a job-order costing system and a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $120,000 and 50,000 hours, respectively, for the year. In August, Job #527 was completed at a cost of $6,200 in direct materials and $3,000 in direct labor. The labor rate is $7 per hour. By the end of the year, Wood had worked a total of 55,000 direct labor-hours and had incurred $130,500 in actual manufacturing overhead cost. If Job #527 contained 250 units, the unit product cost on the completed job cost sheet would be___. Answerarrow_forwardchoose best answerarrow_forward
