Quiche & Tell, Inc., is a catering business. Direct labor costs are $15 per hour and overhead is allocated to jobs at a rate of $10 per direct labor hour. Catering for the Eggsetera, Inc. party cost $1,000 for direct materials and took 20 direct labor hours. Calculate the total cost of the Eggsetera's party.
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- Using ABC in a service company Blanchette Plant Service completed a special landscaping job for Kerry Company. Blanchette uses ABC and has the following predetermined overhead allocation rates: The Kerry job included $750 in plants; $1,300 in direct labor; one design; and 30 plants. Requirements What is the total cost of the Kerry job? If Kerry paid $3,540 for the job, what is the operating income or loss? If Blanchette desires an operating income of 30% of cost, how much should the company charge for the Kerry job?M & J Mechanical sells and services plumbing, heating, and air conditioning systems. M & J's cost accounting system tracks two cost categories: direct labor and direct materials. M & J uses a time-and-materials pricing system, with direct labor marked up 100% and direct materials marked up 40% to recover indirect costs of support staff, support materials, and shared equipment and tools and to earn a profit. Data table During a hot summer day, the central air conditioning in Susan Lee's home stops working. M & J technician Sam Austen arrives at Lee's home and inspects the air conditioner. He considers two options: replace the compressor or repair it. The cost information available to Austen follows: Repair option Replace option Labor rate Labor 7 hrs. 1 hrs. $40 per hour Materials $160 $280 XJose Ruiz manages a car dealer’s service department. His department is organized as a cost center. Costs for a recent quarter are shown below. List the costs that would appear on a responsibility accounting report for the service department. Cost of parts . $22,400 Mechanics’ wages . 14,300 Manager’s salary 8,000 Building depreciation (allocated) 4,500 Shop supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,200 Utilities (allocated) . 800 Administrative costs (allocated) 2,200
- Angler Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Direct labor hours Machine hours Overhead costs Multiple Choice O $15.60. O Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.4 machine hours in the Assembly Department, and 4.0 direct labor hours and 0.6 machine hours in the Finishing Department? $3.40 Assembly 190,000 DLH 390,000 MH $16.10. $ 390,000 Finishing) 149,000 DLH: 95,550 MH $ 581,100Haywood Printing is processing a job with the following activity rates: Activity Cost Driver Driver Rate Direct labor Number of hours $8 Copying Number of copies $0.05 If this job requires 5 hours for 1,000 copies, what is the activity-based cost of the job?SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $520,475 + $1.49X, where X equals number of smokers. Last year, SmokeCity produced 19,100 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by SmokeCity last year? $fill in the blank 2 3. What is the total fixed overhead cost incurred by SmokeCity last year? $fill in the blank 3 4. What is the total variable overhead cost incurred by SmokeCity last year? $fill in the blank 4 For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary. 5. What is the overhead cost per unit produced? $fill in the blank 5 per unit 6. What is the fixed overhead cost…
- Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Direct Cafeteria Department Machining Assembly Costs Maintenance Machining Assembly $150,000 72,000 52,000 42,000 Maintenance 0.3 0.4 0.3 Cafeteria 0.8 0.1 0.1 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the tabs below. Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the…B. Cleanexstar provides a cleaning service for small offices. Cleanexstar calculates a predetermined overheads rate based on total direct labor hours. The budgeted overhead cost for Cleanexstar is RM520,000. The following related information is provided for direct labor hours. Estimated hour per worker 2,000 Number of workers 25 You are required to calculate: i) Total direct labour hours ii) Predetermined overhead rate iii) The actual direct labour hours for Client A are 144 hours. Calculate the overheads absorbed into Client A.alland Manufacturing Company makes two different products, M and N. The company's two departments are named after the products; for example, Product M is made in Department M. Yalland's accountant has identified the following annual costs associated with these two products: Financial data Salary of vice president of production division ................. $160,000 Salary of supervisor Department M .............................. 80,000 Salary Yalland Manufacturing Company makes two different products, M and N. The company's two departments are named after the products; for example, Product M is made in Department M. Yalland's accountant has identified the following annual costs associated with these two products:Financial dataSalary of vice president of production division ................. $160,000Salary of supervisor Department M .............................. 80,000Salary of supervisor Department N ................................. 60,000Direct materials cost Department M…
- Gamma Ltd is a small manufacturing business. Direct materials and direct labour are the only costs that can be traced directly to jobs. All other manufacturing costs are allocated using an overhead rate based on direct labour cost. The company calculates the selling price for each job by adding 25% to the total manufacturing costs. Annual Budget Forecast Direct Materials $4,500 Direct Labour $4,000 Variable Overheads $2,400 Administration expenses $1,500 Insurance $2,000 Advertising for the business $4,000 Depreciation of machinery $1,200 Job number 22-5 is completed during this month. It incurred the following direct costs: Direct materials $75 Direct labour $60 Calculate the total manufacturing cost for job 22-5.Gamma Ltd is a small manufacturing business. Direct materials and direct labour are the only costs that can be traced directly to jobs. All other manufacturing costs are allocated using an overhead rate based on direct labour cost. The company calculates the selling price for each job by adding 25% to the total manufacturing costs. Annual Budget Forecast Direct Materials $4,500 Direct Labour $4,000 Variable Overheads $2,400 Administration expenses $1,500 Insurance $2,000 Advertising for the business $4,000 Depreciation of machinery $1,200 Job number 22-5 is completed during this month. It incurred the following direct costs: Direct materials $75 Direct labour $60 Required: (a) Calculate the estimated total manufacturing overhead cost for the year.Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Department Machining Assembly Maintenance Cafeteria Direct Costs $115,000 65,000 54,000 43,000 Required A Required B Proportion of Services Used by Machining Maintenance Cafeteria 0.7 From Service department costs Maintenance Cafeteria Total Costs 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). 0.5 0.1 Complete this question by entering your answers in the tabs below. Maintenance Cafeteria Assembly The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) To 0.3 0.2 Machining…