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

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
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
Equipment that had a cost of $30,000 and was 70% depreciated was sold during 2010.Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation s
What are the requirements for a computer to exhibit human level intelligence? How long will it be before we have the technology to design suchcomputers? Do you think we shou
On average, 50 customers arrive per hour at a small post office. Interarrival times are exponentially distributed. Each window can serve an average of 25 customers per hour.
Give the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year. Compute straight- line depreciation o
The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not
Partners A and B have a profit and loss agreement with the following provisions: salaries of $41,600 and $38,400 for A and B, respectively; a bonus to A of 10% of net income
Strategic management is that set of managerial decisions and actions that determine the long-run performance of a corporation. Which one of the following is NOT one of the b
The Acme Company has an $8,000,000 balance in accounts receivable. Their CPA believes that there are very few misstatements. Which of the following would the CPA use to audi