Cost-plus time and materials ethics r amp c mechanical
Course:- Accounting Basics
Reference No.:- EM13601541

Assignment Help
Assignment Help >> Accounting Basics

Cost-plus, time and materials, ethics. R & C Mechanical sells and services plumbing, heating, and air conditioning systems. R & C's cost accounting system tracks two cost categories: direct labor and direct materials. R & C uses a time-and-materials pricing system, with direct labor marked up 100% and direct materials marked up 60% to recover indirect costs of support staff, support materials, and shared equipment and tools, and to earn a profit.
R & C technician Greg Garrison is called to the home of Ashley Briggs on a particularly hot summer day to investigate her broken central air conditioning system. He considers two options: replace the compressor or repair it. The cost information available to Garrison follows:
Labor Materials
Repair option 5 hrs. $100
Replace option 2 hrs. $200
Labor rate $30 per hour

• 1. If Garrison presents Briggs with the replace or repair options, what price would he quote for each?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
On December 1, 2008, ABC Linens sold merchandise which costs $400 on account to the Green Hotel Co. for $600 with terms of 3/10, n/30. ABC Linens uses a perpetual inventory
(Entries for Bond Transactions) On January 1, 2010, Osborn Company sold 12% bonds having a maturity value of $800,000 for $860,651.79, which provides the bondholders with a 10
What ethical issues should you consider in deciding on a course of action? Assume that you discover that top management supports the CFO's position because it would lead to
Effect of Order Quantity on Special Order Decision - Awtrey Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in b
You are planning to start a small business that youwant to run as a sole proprietor. A friend of yours, who has beenan employee of an IT consulting corporation for 3 years,
Prepare the adjusting entry (if any) for 2007, assuming the securities are classified as trading. Prepare the adjusting entry (if any) for 2007, assuming the securities are cl
The primary revenue source for not-for-profit organizations is contributions. Please define what a contribution is, and discuss how the different types of contributions are
Record these events in general ledger accounts under an accounting equation. In the last column of the table, provide appropriate account titles for the Retained Earnings amou