Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses. In August, RBS workedfor three clients. It worked 270 hours for Selden Contracting, 170 hours for Moenhart Insurance, and 230 hours for EnglewoodMedical Center. RBS bills clients at $524 an hour; its labor costs are $133 an hour. A total of 750 hours were worked in Augustwith 80 hours not billable to clients. Overhead costs of $66,000 were incurred and were assigned to clients on the basis ofdirect labor-hours. Because 80 hours were not billable, some overhead was not assigned to jobs. RBS had $58,600 inmarketing and administrative costs. All transactions were on account.Required:a. What are the revenue and cost per client?b. Prepare an income statement for August.Complete this question by entering your answers in the tabs below.Required A Required BWhat are the revenue and cost per client?RevenueLaborOverheadMarginSeldenContracting$MoenhartInsurance0 $EnglewoodMedical Center0 $<Required A0Required B >

Revenue: Revenue, often referred to as sales or income, is the total amount of money earned by a…

Answered: Rutland Business Services (RBS)…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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...

See similar textbooks

Similar questions

Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?
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.
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.
Ramsey ltd offers on-site, household appliance repairs to householders. Each month, there are 2300.00 direct labour hours worked on repairs to washing machines, dishwashers and freezers. During the most recent month, the business incurred the following expenses: £ Direct materials 8,000 Direct labour 30,000 Overheads 20,000 During the month, a dishwasher was repaired for a customer. Replacement parts cost £135 and a technician took 5 hours to carry out the repair work. The business uses the direct labour hour basis for overhead recovery and charges an additional 40% to the full cost of a job as a profit mark-up. What should be the price charged to the customer for repairs to the dishwasher? (All calculations to nearest pence.) Question content area bottom Part 1 The price charged to the customer for repairs to the dishwasher is £enter your response here .
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.
Cavy Company estimates that the factory overhead for the following year will be $1,788,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 29,800 hours. The machine hours for the month of April for all of the jobs were 4,770. If the actual factory overhead for April totaled $280,190, determine the over- or underapplied amount for the month. Enter the amount as a positive number.
Cavy Company estimates that the factory overhead for the following year will be $954,800. The company has determined that the basis for applying factory overhead will be machine hours, which is estimated to be 15,400 hours. There are 2,370 machine hours for all of the jobs in the month of April.
Cavy Company estimates that the factory overhead for the following year will be $1,229,600. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 23,200 hours. The machine hours for the month of April for all of the jobs were 4,650. If the actual factory overhead for April totaled $242,014, determine the over- or underapplied amount for the month. Enter the amount as a positive number.$fill in the blank 1 Underapplied
Bob Burgers allocates manufacturing overhead to jobs based on direct labor hours. The company has the following estimated costs for the upcoming year: Direct materials used $50,600 Direct labor costs $70,700 Wages of factory janitors $39,500 Sales supervisor salary $51,600 Utilities for factory $17,000 Rent on factory building $13,500 Advertising expense $5210 The company estimates that 2280 direct labor hours will be worked in the upcoming year, while 1900 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour will be
The Cavy Company estimates that the factory overhead for the following year will be $1,558,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 38,000 hours. The machine hours for the month of April for all of the jobs was 4,900. Prepare the journal entry to apply factory overhead.
Cavy Company estimates that total factory overhead costs for the following year will be $1,749,900. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 30,700 hours. The machine hours for the month of April for all of the jobs were 5,300. If the actual factory overhead for April totaled $309,350. Determine the over- or underapplied amount for the month. Enter the amount as a positive number.
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.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS