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noname [10]
2 years ago
13

Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software

that it purchases and installs on behalf of its clients. The firm’s direct labor includes salaries of consultants that work at the client’s job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 55,000 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $302,500 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $321,300 and its actual total direct labor was 58,850 hours. Required: 1. Compute the predetermined overhead rate. 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job: Direct materials $ 50,850 Direct labor cost $ 27,300 Direct labor hours worked 220 Compute the total job cost for the Xavier Company engagement.
Business
1 answer:
Whitepunk [10]2 years ago
6 0

Answer:

Tech Solutions

1. The predetermined overhead rate is:

= $6

2. The total job cost for the Xavier Company engagement is:

= $79,470

Explanation:

a) Data and Calculations:

Estimated direct labor-hours for the year = 55,000

Estimated fixed overhead cost = $302,500

Estimated variable overhead cost ($0.50 per DLH) = $27,500

Total overhead costs = $330,000 ($27,500 + $302,500)

Actual overhead cost for the year = $321,300

Actual total direct labor-hours = 58,850

Predetermined overhead rate = $6 ($330,000/55,000)

Xavier Company's Job:

Direct materials $ 50,850

Direct labor cost $ 27,300

Direct labor hours worked 220

Applied overhead = $1,320 ($6 * 220)

Total job cost = $79,470

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3 years ago
School Days Furniture, Inc., manufactures a variety of desks, chairs, tables, and shelf units which are sold to public school sy
Blababa [14]

Answer:

Production Budget ( July August September)  5200,  6300,    9000        

Sales Budget   ( July August September)  $ 300,000   $ 360,000  $ 450,000      

Direct Materials Budget ( July August September) $ 31860   $ 39,420                $ 48,600    

Direct Materials Units  Budget   ( July August September)  53,100             65,700    81,000

Direct Labor Budget  ( July August September)  $ 163,800  $ 198450  $ 283,500  

Direct Labor Hours Budget  ( July August September)7800  9450     13500

Explanation:

The formula used are

<em>1) Production Budget = Sales + Desired Ending Inventory Less Opening Inventory</em>

<em>2) Sales Budget= Sales * Price Per unit</em>

<em>3) Raw Materials Budget = Production + Desired Ending Inventory Less Opening Inventory</em>

<em>Raw Materials Costs= Raw Materials Budget * Costs</em>

<em>4) Direct Labor Hours Budget = Production * Direct Labor Hours</em>

<em>Direct Labor Budget = Direct Labor Hours Budget* Wages Per Hour</em>

<em><u /></em>

<u>School Days Furniture, Inc.</u>

<u>Production Budget</u>

                                    <u>  July               August               September </u>

Sales                            5000              6000                   7500

+ Desired

Ending Inventory        1200               1500                     ------(assuming zero inv)

Less Opening

<u>Inventory                    1000               1200                     1500            </u>

<u>Production Budget    5200                6300                   9000    </u><u>     </u>

<u />

Production Budget = Sales + Desired Ending Inventory Less Opening Inventory

<u></u>

<u>School Days Furniture, Inc.</u>

<u>Sales Budget</u>

                                      <u>July                August             September </u>

Sales                            5000              6000                   7500

<u>Price Per unit                 $ 60              $60                     $ 60                    </u>

<u>Sales Budget            $ 300,000          $ 360,000             $ 450,000       </u>

<u />

Sales Budget= Sales * Price Per unit

<u></u>

<u>School Days Furniture, Inc.</u>

<u>Raw Materials Budget</u>

                                    <u>  July               August               September </u>

Production Budget         5200                6300                   9000    

+ Desired

Ending Inventory             630                   900      ------(assuming zero inv)

Less Opening

<u>Inventory                        520                   630                   900           </u>

<u>Materials Requiremnt    5310                6570                  8100  </u>

<u>Board (feet)                      10                      10                           10          </u>

Direct Materials          53,100             65,700                 81,000

<u>Plank Costs                  0.60                 0.60                        0.60         </u>

<u>Direct Materials          $ 31860            $ 39,420                $ 48,600  </u><u>  </u>

Raw Materials Budget = Production + Desired Ending Inventory Less Opening Inventory

Raw Materials Costs= Raw Materials Budget * Costs

<u></u>

<u>School Days Furniture, Inc.</u>

<u>Direct Labor Budget</u>

                                    <u>  July               August               September </u>

Production Budget         5200                6300                   9000    

<u>Direct Labor hours          1.5                     1.5                       1.5        </u>

<u>Direct Labor Hours        7800                9450                  13500</u>

Wages Per hour              $ 21                 $ 21                     $21

<u>Direct Labor Budget   $ 163,800         $ 198450          $ 283,500  </u>

Direct Labor Hours Budget = Production * Direct Labor Hours

Direct Labor Budget = Direct Labor Hours Budget* Wages Per Hour

<u />

<u />

4 0
3 years ago
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Tresset [83]

Answer:

So she must achieve about 11.61 %

Explanation:

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Time of investment = 10 years

We have to find the return which she received

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So according to question 50000\times (1+x)^{10}=150000

(1+x)^{10}=3

(1+x)=3^{0.1}

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