Discuss harris johnsons costing procedure

Assignment Help Cost Accounting
Reference no: EM13890432

Roger Parker, the production manager of Products Company, entered the office of controller Harris Johnson and asked, "Harris, what gives here? I was charged for 330 direct labor hours on Job AD22, and my records show that we spent only 290 hours on that job. That 40-hour difference caused the total cost of direct labor and overhead for the job to increase by over $5,500. Are my records wrong, or was there an error in the direct labor assigned to the job?"

Harris replied, "Don't worry about it, Roger. This job won't be used in your quarterly performance evaluation. Job AD22 was a federal government job, a costplus contract, so the more costs we assign to it, the more profit we make. We decided to add a few hours to the job in case there is some follow-up work to do. You know how fussy the feds are." What should Roger Parker do? Discuss Harris Johnson's costing procedure.

Reference no: EM13890432

Questions Cloud

Portfolio diversification reduces variability of returns : Which of the following statements is correct? Portfolio diversification reduces the variability of the returns on the individual stocks held in a portfolio. Portfolio A has but one security, while Portfolio B has 100 securities.
How many additional dollars of interest : You have $1,000 in an account which pays 5% ANNUAL compound interest. How many ADDITIONAL dollars of interest would you earn over a four year period if you moved the money to an account earning 7%?
Calculate the withholding taxes and gross amount of bonus : Youngston Company (a Utah employer) wants to give a holiday bonus check of $750 to each employee. Since it wants the check amount to be $750, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of th..
How did you group come out with the innovative product : The Innovative Product- How did you group come out with the innovative product? Why did you choose this product? Why do you think your product would appeal to customers
Discuss harris johnsons costing procedure : Roger Parker, the production manager of Products Company, entered the office of controller Harris Johnson. You know how fussy the feds are." What should Roger Parker do? Discuss Harris Johnson's costing procedure.
Payment restriction and finance the amount required for car : You are considering the purchase of new car. You have negotiated with the salesperson at the dealership and you can purchase the vehicle for $30,000. You have $8,000 that you can use as a down payment. Can you meet your payment restriction and financ..
Quoting interest rates called add-on interest : This problem illustrates a deceptive way of quoting interest rates called add-on interest. Imagine that you see an advertisement for Crazy Judy’s Stereo City that reads something like this: Judy explains that if you borrow $1,000 for three years at 1..
Review the opening feature of this chapter dealing : 1.Review the opening feature of this chapter dealing with ash&dans and the entrepreneurial owners, Ashley Cook and Danielle Dankner.
Did the person you interviewed know the actual amount : Did the person you interviewed know the actual amount of direct materials, direct labor, and overhead charged to a particular job? If the job includes some estimated costs, how are the estimates calculated?

Reviews

Write a Review

Cost Accounting Questions & Answers

  Prepare an income statement and balance sheet

Organize ledger accounts under an accounting equation and record the events in the accounts and prepare an income statement, a balance sheet, and a statement of cash flows.

  The total shares outstanding

Candlebox Inc. is going to elect six board members next month. Betty Brown owns 17.4 percent of the total shares outstanding.

  Determine totsons free cash flow

Determine Totsons free cash flow and has Totson's free cash flow improved or declined from 2011 to 2012?

  Evaluate the overhead rates for dept a and b

Evaluate the overhead rates for Dept A and B and evaluate the contract cost using the rates is in question 1 and the subsequent information

  How much of the firms fixed costs stayed in inventory

How the absorptive method will not only impact the reported profits of the year that just ended but will also have an impact on the reported profits of the upcoming year.

  Methods of estimating costs

Estimate the fixed and variable portions of overhead costs based on machine-hours - Methods of Estimating Costs

  Evaluate the individual product costs per unit

Evaluate the individual product costs per unit assuming that Tiger Furnishings uses machine-hours to allocate overhead to the products.

  Determine cost of rosas purchase of gonzalez farm

Rosa Corporation acquired its 90% interest in González Farm on January 1, 2005, when González Farm had $150,000 of Capital Stock and $70,000 of Retained Earnings. González Farm's net assets had fair values equal to their book values when Rosa acqu..

  Calculate helenes basis in the land

Helene and Pauline are twin sisters who live in Louisiana and Mississippi, respectively, Helene is married to Frank, and Pauline is married to Richard. Frank and Richard are killed in an auto accident in 2013 while returning from a sporting event.

  Compute the cost per equivalent unit for materials

Compute the cost per equivalent unit for materials using the FIFO method - compute Costs per Equivalent Unit: Weighted-Average Method

  Compute asset turnover - format of foreign balance sheet

Compute asset turnover - Format of Foreign Balance Sheet Balance sheet presented in standard U.S. format. Rearrange this balance sheet to be in standard British format.

  Prepare journal entries to record each of these transactions

Prepare a trail balance on the trial balance tab. Be sure the trial balance is in balance, that the total debits equal the total credits. Do not proceed to the next step until the trial balance balances.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd