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kati45 [8]
3 years ago
7

DC Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a s

alary of $66,500 annually and one salaried estimator who is paid $50,000 annually. The corporate office has two office administrative assistants who are paid salaries of $61,750 and $46,750 annually.
The president's salary is $169,500. How much of these salaries are common fixed expenses?

a.$169,500

b.$278,000

c.$108,500

d.$330,500
Business
2 answers:
Nataly_w [17]3 years ago
5 0

Answer:

b. $278,000

Explanation:

A fixed cost that supports the functions of more than one segment of the business but it is not directly attributable to any specific segment.

The Salary of office administrative assistants and  President's salary is a common fixed cost because they perform for the multiple segment of the business and Not Directly attributable to any single segment. Whereas Site Supervisor and Estimator are working on a specific project / segment. So their cost will be project's fixed cost.

Common fixed Expense = office administrative assistant's Salary + President's Salary = $61750 + $46,750 + $169,500 = $278,000

labwork [276]3 years ago
3 0

Answer:

Correct option is B.

$278,000

Explanation:

Common Fixed Expenses = Office Administrative Assistant + Office Administrative Assistant + President's Salary

Common Fixed Expenses = $61,750 + $46,750 + $169,500

Common Fixed Expenses = $278,000

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Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to all
hammer [34]

Answer:

a. predetermined overhead rate for each activity

initial concept formation  = $3,310 per Project Change

design  = $3 per Square feet

construction oversight  = $1,130 per Month

b. Classification

unit-level activities :

design

batch level activities :

initial concept formation

Product level activities :

design<em> </em>

Facility level activities :

initial concept formation

construction oversight

Explanation:

This question requires application of Activity Based Costing (ABC) method of allocating overheads.

For each overhead a rate is determined as follows :

<em>initial concept formation </em>

Predetermined overhead rate = Overhead Cost / Number of Project Changes

                                                  = $52,960/ 16

                                                  = $3,310 per Project Change

<em>design </em>

Predetermined overhead rate = Overhead Cost / Square feet

                                                  = $420,000/ 140,000

                                                  = $3 per Square feet

<em>construction oversight </em>

Predetermined overhead rate = Overhead Cost / Number of Months

                                                  = $118,650/ 105

                                                  = $1,130 per Month

<em>Classification</em>

The way the activity is to be absorbed in costing determine its classification

5 0
2 years ago
A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied;
Dvinal [7]

Answer:

The correct answer is option C.

Explanation:

A drought adversely affects the production of crops causing the supply of agricultural products to decline. Because of the decline in supply, the supply curve for agricultural products will shift to the left. This implies that at any given price, a quantity lower than earlier will be supplied.  

Good weather, on the other hand, positively affects the production of crops. This causes supply to increase. As a result, the supply curve will shift to the right, implying, an increase in the quantity supplied at each price level.

5 0
3 years ago
Lou Agent with Top Notch Realty had listed a 100 unit apartment complex for sale. Sam Agent also with Top Notch Realty had a buy
dybincka [34]

Answer:

2. Have both the buyer and seller sign required disclosures describing the designated sales agency relationship and stating that each the buyer and seller have assets of $1 million or more.

3 0
3 years ago
During March, Hanks Manufacturing started and completed 30,000 units. In beginning work in process, there were 5,000 units 60 pe
Delvig [45]

Answer:

Equivalent units

Materials= 40,000 units

Conversion= 36,000 units

Explanation:

Equivalent units are notional whole units which represent incomplete work and are used to apportion cost between work progress and completed work

Equivalent units = Degree of work done(%) × units of inventory

Conversion cost

<em>Item</em>                                            <em>     equivalent units</em>

Opening inventory 40% × 5,000 =     2,000

Fully worked units 100% × 30,000= 30,000  

Closing inventory 40%× 10,000=      <u> 4,000 </u>

Total equivalent unit                       <u>    36,000</u>

Notes

The following notes explains the computation of the items of equivalent unit for conversion cost:

1. DOC for opening inventory is 40% i.e 100%-60%. Remember that 60% work has been done in the previous period, so the balance is to be done in this current period  

2. Fully work represent the units of inventory introduced in the current period and completed in the same period. Meaning 100% work was achieved in the period.  

3. Closing work is only 40% completed. This represent work started this period but not yet completed.

Material  cost

<em>Item   </em>                                               <em> equivalent units</em>

Opening inventory 0% × 5,000 =         0

Fully worked units 100% × 30,000= 30,000  

Closing inventory 100%× 10,000=   <u> 10,000 </u>

Total equivalent unit                         <u> 40,000</u>

Notes

The following notes explains the computation of the items of equivalent unit for Material cost:

1. DOC for opening inventory is 0% i.e 100%-1000%. Remember that materials are added at the beginning. Hence all the materials required for the opening inventory had been added in the previous period

2. Fully work represent the units of inventory introduced in the current period and completed in the same period. Meaning 100% materials  was added in the period.  

3. All the materials required for the closing inventory were added in this period, hence, 100% degree of completion was used

Equivalent units

Materials= 40,000 units

Conversion= 36,000 units

5 0
3 years ago
Required information Use the following information for the Exercises below. Skip to question [The following information applies
Lyrx [107]

Answer:

Follows are the solution to this question:

Explanation:

In point A:

The estimated amount of uncollectible allowance =\$ \  635,000 \times 4 \% = \$ \ 2,540,000

In point B                                    Journal

Titles and descriptions of accounts         Debit          Credit         Calculation    

Expenditure on bad debts                \$ \ 2,526,700

Doubted debt allowance                          \$ \ 2,526,700 \  \   (\$ \ 2,540,000 - \$ \ 13,300)

(Bad Debts Expense recorded)  

In point C                                         Journal

Titles and descriptions of accounts         Debit          Credit         Calculation    

Expenditure on bad debts               \$ \ 2,553, 300

Doubted debt allowance                        \$ \ 2,553, 300     \ \ \ \ (\$ \ 2,540,000 + \$ \ 13,300)    

(Bad Debts Expense recorded)  

5 0
3 years ago
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