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Sloan [31]
3 years ago
7

Teri Martin Nerdmeister, CPA provides bookkeeping and tax services to her clients. She charges a fee of $60 per hour for bookkee

ping and $90 an hour for tax services. Martin estimates the following overhead costs for the upcoming year:Office Supplies $16,000Computer fees 24,000Secretary's salary 30,000Rent 18,000$88,000Operating profits declined last year and Ms. Martin has decided to use activity based coating (ABC) procedures to evaluate her hourly fees. She gathered the following info from last year's records: Top of Form Activity Bottom of Form Cost Driver Bookkeeping Tax Services Office Supplies Hours billed 1200 800 Computer fees Computer hours used 400 600 Secretary's salary Number of clients 16 84 Rent Types of services used 1 1 Bottom of Form 1. What is the total cost allocated to the bookkeeping services using activity-based costing?Based on the information in question #3 Martin wants her hourly fees for the tax services to be 160% of their activity-based costs. What is the fee per hour for tax services in the upcoming year?
Business
1 answer:
Anna007 [38]3 years ago
5 0

Answer: a. 33,000 b. $110

Explanation:

The following information can be derived from the question:

The total cost allocated to the bookkeeping services using activity-based costing will be:

Office Supplies will be:

= (16000 × 1200) ÷ (1200 + 800)

= 19200000/2000

= 9600

Computer Fees will be:

= (24000 × 400) ÷ (400 + 600)

= 9600000/1000

= 9600

Secretary's Salary will be:

= (30000 × 16) ÷ (16 +84)

= 480000/100

= 4800

Rent will be:

= (18000 ×™1) ÷ (1+1)

= 18000/2

= 9000

Therefore, the total Cost that is allocated will be:

= 9600 + 9600 + 4800 + 9000

= $33000.

b. Here, we are told that Martin wants her hourly fees for the tax services to be 160% of their activity-based costs. Therefore, the fee per hour for tax services in the upcoming year will be:

= [(88000 - 33000)/800] × 160%

= (55000/800) × 1.6

= 68.75 × 1.6

= $110

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Answer:

C. stock indexes are unbiased and perfect indicators of market activity.

Explanation:

Stock indexes are a tool that is used to track a group of assets using standardised criteria.

Usually indexes monitors a group of securities. Indexes can be broad based or specialised.

Indexes are statistically derived benchmarks that securities are measured against. They are however not unbiased and perfect indicators of market activity.

This is because investor behaviour cannot be guaged statistically.

However indexes replicate the market activity in a certain segment of the stock market, serve as a benchmark to evaluate investment manager performance, and are based on criteria that define the market segment of interest.

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The goal of any credit card holder should be to A. run up as much debt as possible. B. use the bankruptcy filing as a way to red
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The goal of any credit card holder should be to C.) AVOID EXCESSIVE CREDIT CARD DEBT.

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A process cost system would be used for all of the following products except computer chips. motion pictures. chemicals. soft dr
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One thing that a process cost system cannot be used for from the given options is Motion pictures.

<h3>What is process costing?</h3>

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5 0
1 year ago
A customer has made an investment that pays $20 of interest during its first year and that has appreciated by $250, for a year-e
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Answer:

0.2571 or 25.71%

Explanation:

In this case, even though the initial amount invested is not given, it can be found by subtracting the amount by which the investment appreciated of the year-end value:

A = \$1,300 - \$250\\A = \$1,050

The return rate is given by the interest payed added to the amount appreciated, divided by the initial investment:

r=\frac{\$250+\$20}{\$1,050} \\r=0.2571= 25.71\%

The customer's total return is 0.2571 or 25.71%

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3 years ago
The Dahle Manufacturing Company has two production departments (Assembly and Finishing) and two service departments (Human Resou
ikadub [295]

Answer:

$54,000

Explanation:

Calculation to determine what the amount of Human Resources cost allocated to the Assembly Department is:

Using this formula

Human Resources cost allocated to the Assembly Department=Human Resources budgeted costs* Human resource percentage

Let plug in the formula

Human Resources cost allocated to the Assembly Department=$90,000 x 60%

Human Resources cost allocated to the Assembly Department = $54,000

Therefore Using the step-down method and assuming the Human Resources Department is allocated first, the amount of Human Resources cost allocated to the Assembly Department is:$54,000

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