Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.)Labor rateeTextbook and MediaCompute the material loading percentage.Material loading percentageeTextbook and Mediaper hourRCE has just received a request for a bid on a security and home entertainment system from Buil Builders on a $1,368,000 newhome. The company estimates that the job would require 80 hours of labor and $45,600 of parts. Compute the total estimatedbill.Total estimated bill $ Concord Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newlyconstructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available.Technicians' wages and benefitsParts manager's salary and benefitsOffice employee's salary and benefitsOther overheadTotal budgeted costsTimeCharges$171,00042,75028,500$242,250MaterialLoadingCharges$38,76017,10047,880$103,740The company has budgeted for 7,125 hours of technician time during the coming year. It desires a $38 profit margin per hour of laborand an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2022 will be $798,000.

Overhead costs may be applied at a set rate based on the number of machine hours or labour hours…

Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rate $ eTextbook and Media Compute the material loading percentage. Material loading percentage eTextbook and Media per hour RCE has just received a request for a bid on a security and home entertainment system from Buil Builders on a $1,368,000 new home. The company estimates that the job would require 80 hours of labor and $45,600 of parts. Compute the total estimated bill. Total estimated bill

Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rate $ eTextbook and Media Compute the material loading percentage. Material loading percentage eTextbook and Media per hour RCE has just received a request for a bid on a security and home entertainment system from Buil Builders on a $1,368,000 new home. The company estimates that the job would require 80 hours of labor and $45,600 of parts. Compute the total estimated bill. Total estimated bill

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Rey Custom Electronics (RCE) sells and installs complete security computer, audia, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing The following budgeted cost data are available. Materlal Time Loading Charges Charges Technicians' wages and benefits $166,400 Parts manager's salary and benefits $34800 Office employee's salary and benefits 26,880 17.280 Other overhead 17.280 44.640 Total budgeted costs $210.560 $96.720 The company has budgeted for 6400 hours of technician time duringthe coming year. It desires a $39 profit margin per hour of labor and an B0% profit on parts. It estimates the total imvoice cost of parts and materials in 2020 will be $7444,000. (a) Your answer is correct Compute the rate charged per hour of labor. (Round answer to 2decimal places eg 1050J Labor rate 719 per hour eTextbook and Media Attempts 1 of 3 used (b) X Your answr is incorrect Compute the material loading percentage Material loading percentage…
Culver Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available. Time Material Loading Charges Charges Technicians' wages and benefits $174,000 Parts manager's salary and benefits $39,440 Office employee's salary and benefits 36,250 17,400 Other overhead 14,500 48,720 Total budgeted costs $224,750 $105,560 The company has budgeted for 7,250 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2022 will be $812,000. (a) Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rate $ Save for Later per hour Attempts: 0 of 1 used Submit Answer
PROBLEM SOLVING: This will help you develop your analytical capabilities and exercise judgement. Instructions: Answer the following questions and provide the necessary requirements. Problem 1 Justine Company budgeted overhead cost'at P180,000 for the current period. In addition, they budgeted costs for factory rent at P215,000, cots for depreciation of office equipment at P12,000 costs for office rent at P92,000, and costs for depreciation of factory equipment at P38,000. All these were based upon estimated machine hours of P80,000. At the end of the period. The factory overhead control account has a balance of P373,875. Actual machine hours were 74,000. Required: 1. Compute the over-underapplied factory overhead for the period. 2. Journalize the over-underapplied factory overhead.
Blue Spruce Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 is available for Blue Spruce. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead (a) Total budgeted costs Compute the rate charged per hour of labor. Time Charges $202,800 Labor rate $ 39,000 7,800 $249,600 The company desires a $39 profit margin per hour of labor and a 28% profit margin on parts. It has budgeted for 7,800 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2022 will be $416,000. Material Loading Charges per hour $39,300 14,780 29,120 $83,200
Carla Vista Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 are available for Carla Vista: Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs (a) Rate charged $ Time Charges Material Loading Charges $245,830 Calculate the rate charged per hour of labour. eTextbook and Media Save for Later 47,580 31,720 $325,130 The company wants a $30 profit margin per hour of labour and a 25% profit margin on parts. It has budgeted for 7,930 hours of repair time in the coming year and estimates that the total invoice cost of parts and materials in 2022 will be $388,000. $36,860 16,490 per hour 25,220 $78,570 Attempts: 0 of 2 used Submit Answer
A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activities for next year follows. Activity Purchasing Cleaning factory Providing utilities Activity cost pool Purchasing Factory Expected Cost $127,600 31,500 63,070 Expected Costs Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.) Expected Amount of Cost Driver Cost Driver Purchase orders Square feet Square feet 4,400 4,900 Activity Overhead Rate Expected Usage of Cost Driver 4,488 purchase orders 4,900 square feet 4,900 square feet per purchase order per square foot
D Coronado Industries provides financial consulting and sells its own line of financial planners and budgeting products. The company has collected the following data for the next year's budgeted activity for a lead consultant and the supplies clerk. W S Consultants' wages Benefits Related overhead Clerk's wages Benefits Related overhead Profit margin per hour Profit margin on materials Total estimated consulting hours Total estimated material costs O $30.48. O $52.00. O $32.00. O $16.00. Save for Later # 3 E The labor rate per hour for this consultant is D с $ t R $90000 50000 LL 20000 $18000 3000 21000 $20 5000 $174000 15 % % G Search or type URL T MacBook Pro G ^ 6 Y & 7 H U * CO 8 Attempts: 0 of 1 used J + - - 9 K Submit Answer ) O 3 L P
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?
Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Refer to the information for Pizza Vesuvio on the previous page. Coefficients shown by a regression program for Pizza Vesuvios data are: Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of labor and the variable rate per employee hour. 2. Construct the cost formula for total labor cost. 3. Calculate the budgeted cost for next month, assuming that 675 employee hours are budgeted. (Note: Round answers to the nearest dollar.) Use the following information for Brief Exercises 3-17 through 3-20: Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
A local picnic table manufacturer has budgeted the following overhead costs: They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Recent success has yielded an order for 1,500 tables. Determine how much the job would cost given the following activities, and assuming an hourly rate for direct labor of $25 per hour: