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Problem 1: Gallagher Associates, a law firm, hires Attorney Dina Martin at an annual salary of $200,000. The law firm expects her to spend 2,500 hours a year performing legal work for clients. Indirect costs are assigned to clients based on attorney billing hours. Firm attorneys are expected to work a total of 28,000 direct labor hours this year. Before the fiscal year begins, Gallagher estimates that the total indirect costs for the upcoming year will be $1,260,000. What would be the hourly (cost) rate to Holman Associates of employing Green? If Green works on Client 367 for 12 hours, what direct labor cost would be traced to client 367? What is the indirect cost allocation rate? What indirect costs will be allocated to Client 367? What is the total job cost for Client 367?
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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