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Concept explainers
Nuttʼs management is very concerned about the cost of overhead on its jobs. When jobs are complete, overhead costs should be between 15% and 20% of total costs. For example, the labor cost on Job 8958 is 25% of total costs, higher than the norm. Open Job 8961 and click the Chart sheet tab. A pie chart appears showing the cost components on that job. Record the labor cost percentage in the space provided. Repeat this for each of the jobs worked on in August.
Did Nutt maintain good cost control on all its jobs? Explain.
Worksheet. During September, Job 8963 required two additional material requisitions to complete the job. Open JOB8963 and modify the
Preview the printout to make sure it will print neatly on one page, and then print the worksheet. Save the completed worksheet as JOBT.
Chart. Open JOB8964 and click the Chart sheet tab. Prepare a bar chart for JOB8964 showing the amount of material, labor, and overhead required to complete the job. Use the Chart Data Table found in rows 42–46 as a basis for preparing the chart. Enter your name somewhere on the chart. Save the file again as J0B8964. Print the chart.
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Chapter 17 Solutions
Excel Applications for Accounting Principles
- Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: It estimates there will be five orders in the next year, and those jobs will involve: What is the total cost of the jobs?arrow_forwardPlease use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: Box Springs estimates there will be four orders in the next year, and those jobs will involve: What is the total cost of the jobs?arrow_forwardAlvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from the job sheets to assess cost performance. Information on the total cost, product type, and quantity of items produced is as follows: a. Develop a graph for each product (three graphs), with Job Number (in date order) on the horizontal axis and Unit Cost on the vertical axis. Use this information to determine Alvarez Manufacturing Inc.s cost performance over time for the three products. b. What additional information would you require in order to investigate Alvarez Manufacturing Inc.s cost performance more precisely?arrow_forward
- Job order cost sheets show the following costs assigned to each job: The company assigns overhead at twice the direct labor cost. What is the total cost for each job?arrow_forwardNeedarrow_forwardMarpole Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: (Click the icon to view the estimates of the cost pools.) The accounting records show the Bossman job consumed the following resourd ources: (Click the icon to view the resources consumed for the Bossman job.) When selling prices are based on costs assigned using the single cost driver, direct labour hours, then the Bossman job OA. may increase overall sales as other jobs will be cross-subsidized B. will contribute too little to profits, and Gregory Enterprises will not want to accept additional work from the company C. is fairly billed because resources are allocated uniformly to all jobs D. will likely seek to do business with competitors E. is grossly underbilled for the job, while other jobs will be unfairly overbilled Resources Consumed Cost Driver Direct labour-hours Machine-hours Square metres of area Actual Level 150 1,700 80 - X Estimates of…arrow_forward
- Frary Corporation is a building contractor. Frary tracks product costs in its job cost system and uses board feet to apply overhead to jobs. Frary has calculated an overhead rate of $61.52 per board foot and they have recorded the following information for job number E4641: Direct labor hours: 45 Direct labor rate: $17.14 Direct material: $5,784.00 Total board feet: 243 The total cost of job number E4641 is: Select one: A. $20,733.36 B. $6,555.30 C. $5,862.66 D. $9,323.70 E. $21,504.66arrow_forwardIn a factory, a team of six maintenance staff are paid a guaranteed weekly wage. Which of the following is the most appropriate cost classification for their wages? Direct labour cost Indirect labour cost Semi-variable cost Variable overhead costarrow_forwardPlease refer to the picture. The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.arrow_forward
- Elkland Heating & Cooling installs and services commercial heating and cooling systems. screenhosta ttache below as well thanksarrow_forwardA&R Quality Advisors is a small consulting firm offering quality audits and advising services to small and mid-sized manufacturing firms. Quality audits entail reviewing, checking, and documenting quality practices within a firm. Quality advising entails making recommendations for new or revised quality practices. Other firms in the area offer one or both of these services, although the competition for quality audit jobs is stronger than for quality advising. In addition to senior executives, A&R employees are either staff or managers. Staff employees are usually younger with less experience. Managers, who oversee the staff on jobs, are more experienced. The average hourly wage is $60 for staff and $150 for managers. (Both staff and managers are paid an annual salary; these hourly costs are based on 2,000 average annual hours worked.) Staff are expected to spend at least 90 percent of their time on billable work. Because of administrative work associated with supervising the staff and…arrow_forwardWhite Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours.At the beginning of the year, the company made the following estimates: Department Cutting FinishingDirect labor-hours . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 30,000Machine-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . .48,000 5,000Total fixed manufacturing overhead cost . . . . .$264,000 $366,000Variable manufacturing overhead per machine-hour . $2.00 —Variable manufacturing overhead per direct labor-hour . . — $4.00 Required:1.…arrow_forward
- Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
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