Reference no: EM132537113
Job costing for services The Hillman Company sells and services lawn mowers, snow blowers, and other equipment. The service department uses a job order cost system to determine the cost of each job, such as oil changes, tune-ups, and repairs. The department assigns conversion costs through a cost driver rate on the basis of direct labor hours. The cost driver rate additionally includes a markup of 25% on the job's conversion costs in order to provide a reasonable profit for Hillman. The customer's invoice itemizes prices for parts and labor, where the stated labor rate is the department's cost driver rate, which includes direct labor costs, assigned overhead costs, and the 25% markup on conversion costs.
Hillman Company's service department estimated the following information for the current year:
Salaries of mechanics $120,000
Fringe benefits 54,000
General and administrative 18,000
Depreciation 42,000
Billable direct labor hours 4,500
Question (a) Determine Hillman Company's service department's cost driver rate for assigning conversion costs on the basis of billable direct labor hours.
Question (b) Job 254 required $47.40 of materials and 0.7 direct labor hour. Determine the price charged for job 254.
|
Discuss the misuse of antibiotics in the clinical setting
: Discuss the misuse of antibiotics in the clinical setting. How does this misuse play a role in antibiotic resistance
|
|
Compare life cycles of heavier stars versus lighter stars
: Compare the life cycles of heavier stars versus lighter stars. Include the role of mass in determining the temperature, color, lifespan,
|
|
What is the relevant cost of kilograms of the raw material
: Carol Inc.What is the relevant cost of the 120 kilograms of the raw material when deciding whether to proceed with the special project?
|
|
When focusing my microscope
: When focusing my microscope I lose the image of my slide when moving above 40x. how can I fix that?
|
|
Determine hillman company service department cost driver
: Determine Hillman Company's service department's cost driver rate for assigning conversion costs on the basis of billable direct labor hours.
|
|
Focus on any science or health-related event
: Science disciplines of discussion can include but are not limited to: biology, chemistry, molecular biology, biochemistry, physical chemistry, biotechnology,
|
|
Genetics and upbringing or the environment
: Which do you think has more influence on a person's weight: genetics, upbringing, or the environment?
|
|
Several big data visualization tools
: Several Big Data Visualization tools have been evaluated in this week's paper. While the focus was primarily on R and Python with GUI tools,
|
|
Explain between upstream and downstream costs
: Explain the differences between manufacturing overhead, upstream and downstream costs, and the indirect costs of responsibility centres.
|