User Account

All Pages

Compute the budgeted costs for the richardson and punch jobs

Assignment Help Cost Accounting
Reference no: EM131728837

1. Compute the 2014 budgeted direct-cost rates for (a) professional partners and (b) professional associates.
2. Compute the 2014 budgeted indirect-cost rates for (a) general support and (b) secretarial support.
3. Compute the budgeted costs for the Richardson and Punch jobs, given the followinginformation:

  Richardson, Inc. Punch, Inc.
Professional partners 50 hours 33 hours
Professional associates 75 hours 132 hours


4. Comment on the results in requirement 3. Why are the job costs different from those computed using the firm's previous method?
5. Would you recommend Lyon& Associates use the job-costing system in the previous method or the job-costing system in this problem?

Explain.

The average budgeted total compensation per professional for 2014 is $108,000. Each professional is budgeted to have 1,500billable hours to clients in 2014. All professionals work for clients to their maximum 1,500billable hours available. All professional labor costs are included in a singledirect-cost category and are traced to jobs on aper-hour basis. All costs of Lyon& Associates other than professional labor costs are included in a singleindirect-cost pool(legal support) and are allocated to jobs using professionallabor-hours as the allocation base. The budgeted level of indirect costs in 2014 is $2,250,000.

The cost estimates for theRichardson, Inc.job, which requires 125budgeted hours of professional labor and for thePunch, Inc.job, which requires 165budgeted hours of professional labor are asfollows:

  Richardson Punch
Direct-costs $9,000 $11,880
Indirect-costs 9,375 12,375
Total costs $18,375 $24,255
  Professional Partner Labor Professional Associate Labor
Number of professionals 4 16
Hours of billable time per professional 1,500 per year 1,500 per year
Total compensation (average per $180,000 $90,000
professional)

Budgeted information for 2014relating to the twoindirect-cost categories is as follows:

  General Support Secretarial Support
Total costs $1,950,000 $300,000
Cost-allocation base Professional labor-hours

Partner labor-hours

Reference no: EM131728837

Questions Cloud

Passenger when he is at the top of the wheel : What is the apparent weight of a 60 kg passenger when he is at the top of the wheel?
When the cylinder reaches the bottom of the ramp : A 3.0 kg solid cylinder (radius = 0.20 m , length = 0.50 m ) is released from rest at the top of a ramp and allowed to roll without slipping.
Estimate rome company''s budgeted net income for next year : Estimate Rome Company's budgeted net income for next year, determine how many units of each product Rome must sell to break even.
What is the gross profit of product y assuming the physical : What is the gross profit of product Y assuming the physical units method is used
Compute the budgeted costs for the richardson and punch jobs : Compute the budgeted costs for the Richardson and Punch jobs, given the following information
Determine the new market value of the equity : Determine the new stock price if the $1 billion in debt is used to repurchase stock. Determine the new market value of the equity if the repurchase occurs
Define what is the impact on profit for the year : What is the impact on profit for the year if Alpine accepts the special order
Prepare a schedule to show the differential costs per cookie : Prepare a schedule to show the differential costs per cookie
Define manufactures and sells metal replicas of classic cars : Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars

Reviews

Write a Review

Cost Accounting Questions & Answers

  Record the receipt of the subscription fees

Give the entries to record the receipt of the subscription fees and to adjust the accounts at December 31, assuming annual financial statements are prepared at year-end.

  Evaluate the amount of depreciation

Evaluate the amount of depreciation that can be taken in the first two years of the truck's useful life if the actual miles driven are 16,000 and 18,200, correspondingly.

  Prepare a third variable costing statement

Prepare a third variable costing statement assuming that the price is increased by 50 percent for all five categories (use original sales information).

  Paris corporation holds a 100000 unrealized net capital

paris corporation holds a 100000 unrealized net capital gain and a capital loss carry forward that will finish in the

  What is the elasticity coefficient for each price

What is the elasticity coefficient for each price

  Question 1 for the past five years the rs company has

question 1 for the past five years the rs company has produced and sold electronic magnets to chemistry labs throughout

  Calculate for each product the full cost and selling price

A business manufacturers refrigerators for domestic use. There are 3 models: Lo, Mid and Hi. The models, their quality and their price are aimed at different markets. Product costs are computed on a blanket (businesss-wide) overhead rate basis usi..

  Compute the cost of the components in the capital structure

Compute the cost of the components in the capital structure. Compute the weighted average cost of capital (WACC). Discuss the marginal cost of capital for this firm (no calculations needed).

  Identify the potential sales and department store

Identify the potential sales and department store transactions that can be stored within the database and design a database solution and the potential business rules that could be used to house the sales transactions of the department store.

  Determine participation in the years net income

Determine participation in the years net income of $420,000 under each of the following independent assumptions:

  Compute equivalent production units for material costs

Compute the equivalent production units for material and conversion costs (labor and factory overheadj for the month, under (a) FIFO, and (b) weighted average cost.

  Create a pie chart for total assets

Create the Balance Sheet,Income Statement and Statement of Retained Earnings for the following company in an Excelworkbook, employing three sheets.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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