Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses. In August, RBS worked for threeclients. It worked 270 hours for Selden Contracting, 170 hours for Moenhart Insurance, and 230 hours for Englewood Medical Center.RBS bills clients at $527 an hour; its labor costs are $134 an hour. A total of 750 hours were worked in August with 80 hours notbillable to clients. Overhead costs of $66,750 were incurred and were assigned to clients on the basis of direct labor-hours. Because80 hours were not billable, some overhead was not assigned to jobs. RBS had $58,800 in marketing and administrative costs. Alltransactions were on account.Required:a. What are the revenue and cost per client?b. Prepare an income statement for August.Complete this question by entering your answers in the tabs below.Required A Required BWhat are the revenue and cost per client?RevenueLaborOverheadMarginSeldenContractingMoenhartInsurance$ 142,290 $36,180$ 106,110 $EnglewoodMedical Center121,21030,82089,590 $22,78066,810 $90,390< Required ARequired B

The cost of a product refers to the total amount of expenses incurred to produce or acquire a…

Answered: Rutland Business Services (RBS)…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...

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Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses. In August, RBS worked for three clients. It worked 270 hours for Selden Contracting, 170 hours for Moenhart Insurance, and 230 hours for Englewood Medical Center. RBS bills clients at $545 an hour; its labor costs are $140 an hour. A total of 750 hours were worked in August with 80 hours not billable to clients. Overhead costs of $71,250 were incurred and were assigned to clients on the basis of direct labor-hours. Because 80 hours were not billable, some overhead was not assigned to jobs. RBS had $60,000 in marketing and administrative costs. All transactions were on account. Required:What are the revenue and cost per client? Prepare an income statement for August.
Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses. In August, RBS worked for three clients. It worked 270 hours for Selden Contracting, 170 hours for Moenhart Insurance, and 230 hours for Englewood Medical Center. RBS bills clients at $500 an hour; its labor costs are $125 an hour. A total of 750 hours were worked in August with 80 hours not billable to clients. Overhead costs of $60,000 were incurred and were assigned to clients on the basis of direct labor-hours. Because 80 hours were not billable, some overhead was not assigned to jobs. RBS had $57,000 in marketing and administrative costs. All transactions were on account. Required: What are the revenue and cost per client? Prepare an income statement for August.
McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $394,200 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows: Debbie $173,880 2,300 Tara Annual Salary $88,920 1,950 Billable Hours The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for Debbie and Tara's services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 20 percent markup. Required: 1. Compute the predetermined overhead rate. 2. Compute the hourly billing rate for Debbie and Tara.
For the month of July, UP Payroll Services worked 3,000 hours for Dune Motors, 900 hours for Jake’s Charters, and 1,500 hours for Mission Hospital. UP bills clients at $128 an hour; its labor costs are $48 an hour. A total of 6,000 hours were worked in July with 600 hours not billable to clients. Overhead costs of $72,000 were incurred and were assigned to clients on the basis of direct labor-hours. Because 600 hours were not billable, some overhead was not assigned to jobs. UP had $48,000 in marketing and administrative costs. All transactions were on account. Required: a. What are the revenue and cost per client? b. Prepare an income statement for July.
The consulting firm Sheridan Financial employs 48 full-time staff. The estimated compensation per employee is $107,300 for 1,850 hours. It charges all direct labour costs to clients. It includes any other costs in a single indirect cost pool and allocates them based on labour hours. Actual indirect costs were $854,200. Estimated indirect costs for the coming year are $1,510,000. The firm expects to have 78 clients in the coming year. (a) Your answer is incorrect. Determine the overhead rate per direct labour hour. (Round anwer to 2 decimal places, e.g. 2.25.) Overhead rate per direct labour hour $
A greeting card company incurred the following costs associated with running its business last month: cardstock (thick paper), $9,820; ink, stickers, ribbons, and other card attachments, $7,520; rent on office space, $1,420; rent on factory space, $2,320; office salaries, $5,220; factory labor, $8,920; and advertising, $870.How much were its total product costs last month? Total product costs $enter the total product costs in dollars How much were its total period costs last month? Total period costs $enter the total period costs in dollars
Seal Financial Advisors provides accounting and finance assistance to customers in the retail business. Seal has four professionals on staff and an office with six clerical staff. Total compensation, including benefits, for the professional staff runs about $573,000 per year, and normal billable hours are 8,300 hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are $755,000. Seal allocates office and administrative costs to clients monthly, using a predetermined overhead allocation rate based on billable hours. What is the predetermined overhead allocation rate that Seal will use for office and administrative costs? (Round your answer to the nearest cent.) A. $69.04 per hour B. $21.93 per hour C. $160.00 per hour D. $90.96 per hour
A manufacturing company estimates it will incur $240,000 of overhead costs in the next year. The company applies overhead using machine hours and estimates it will use 1,600 machine hours in the next year. During the month of June, the company used 80 machine hours on Job 1 and 70 machine hours on Job 2.
For August, Royal Consulting and Mediation Practice (RCMP) worked 900 hours for Alberta Company and 2,100 hours for Ontario Corporation. RCMP bills clients at the rate of $400 per hour; labor cost for its consulting staff is $200 per hour. The total number of hours worked in August was 3,000, and overhead costs were $60,000. Overhead is applied to clients at $24 per labor-hour. In addition, RCMP had $240,000 in marketing and administrative costs. All transactions are on account. All services were billed. Transaction Description (a) Record Labor cost (b) Record Applied Service Overhead (c) Record Cost of services billed (d) Record Actual Service Overhead Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an income statement for the company for August.
The service department at Major Motors sold $48,000 in service last month. They had direct costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What is the gross profit Major Motors earned last month?
Sunland Horticulture provides and maintains live plants in office buildings. The company's 884 customers are charged $37 per month for this service, which includes weekly watering visits. The variable cost to service a customer's location is $17 per month. The company incurs $2,194 each month to maintain its fleet of four service vans and $3.004 each month in salaries. Sunland pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions A.) picture one B.) What is the expected monthly operating income if 174 customers are added? Operating income $________ C.) second picture
Park Industries manufactures custom-designed playground equipment for schools and city parks. Park expected to incur S784,700 of manufacturing overhead cost, 41,300 of direct labor hours, and S1,073,800 of direct labor cost during the year (the cost of direct labor is $26 per hour). The company allocates manufacturing overhead on the basis of direct labor nours. During August, Park completed Job 306. The job used 165 direct labor hours and required S12,700 of direct materials. The City of Jonestown has contracted to purchase the playground equipment at a price of 27% over manufacturing cost. Reac the requirements Requirement First identify the formulathen calculate the predetermined overhead rate. Estimated yearly overhead costs Estimated yearly direct labor hours - Predetermined overhead rate per hour

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