Your company completed the site work for the South Pointe office complex. The costs are shown in the following table. The site concrete labor and landscaping were done by subcontractors. The demolition and grubbing and grading, and excavation were done by the company's excavation crew. The company's minimum profit and overhead markup is 17%. Determine the profit generated by the project management. Job: 411 South Pointe Site Work Code Description 2050 Demolition & Grubbing 2100 2610 2620 Site Conc.-Concrete 2700 Landscaping 525 Grading & Excavation Site Conc.-Labor 1438 963 438 Job Total Contract Amount 138,000 Billed To Date 128,000 Actual 33,562 20,500 19,200 9,375 37.500 120,137 Costs--- Budget 35,000 19,500 19,200 9,900 37.500 121.100 May 15, 2004 Ovemin -1.438 1.000 0 -$25 0 -963-
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- 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)Using ABC in a service company Blanchette Plant Service completed a special landscaping job for Kerry Company. Blanchette uses ABC and has the following predetermined overhead allocation rates: The Kerry job included $750 in plants; $1,300 in direct labor; one design; and 30 plants. Requirements What is the total cost of the Kerry job? If Kerry paid $3,540 for the job, what is the operating income or loss? If Blanchette desires an operating income of 30% of cost, how much should the company charge for the Kerry job?Bob Randall, cost accounting manager for Hemple Products, was asked to determine the costs of the activities performed within the company's Manufacturing Engineering Department. The department has the following activities: creating bills of materials (BOMs), studying manufacturing capabilities, improving manufacturing processes, training employees, and designing tools. The resource costs (from the general ledger) and the times to perform one unit of each activity are provided below. Resource Costs Activities Unit Time Driver Salaries $425,000 Creating BOMs 0.6 hr. No. of BOMs Equipment 92,000 Designing tools 3.7 hrs. No. of tool designs Supplies 43,000 Improving processes 1.1 hrs. Process improvement hrs. Total $560,000 Training employees 2.1 hrs. No. of training sessions Studying capabilities 2.1 hrs. Study hours Total machine and labor hours (at practical capacity): Machine…
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- Abagail Corp. uses activity-based costing system with three activity cost pools. The following information is provided: Costs: Wages and salaries $204,000 Depreciation 114,000 Utilities 116,000 Activity Cost Pools Assembly Setting Up Other Wages and Salaries 0.58 30% 10% Depreciation 0.39 45% 20% Utilities 0.24 40% 30% How much total cost would be allocated to the Assembly activity cost pool?Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct materials. Direct labor-hours Direct labor wage rate Machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $19 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be: Multiple Choice $7,236 $3,793 $3,720 $6,396 Prev $ 2,461 2 of 7 74 labor-hours $ 18 per labor-hour 137 machine-hours NextElizabeth Flanigan and Associates is an engineering and design firm that specializes in developing plans for recycling plants for municipalities. The firm uses a job costing system to accumlate the cost associated with each design project. Flanigan employs three levels of employee: senior engineers, associate engineers, and clerical staff. The salary cost of the clerical staff is included in overhead, along with the cost of engineering supplies, automobile travel, and equipment depreciation. The cost of airline travel, motels, building permits, and fees from other consultants is charged to each project as direct materials. Overhead is applied to projects using a predetermined overhead rate based on total engineering hours. The rate for 20X0 is $5 per hour. The six different salary levels for 20X1 for the employees of Elizabeth Flanigan and Associates are listed below. The hourly rate is determined by dividing the yearly salary by 2,000 hours per year. Senior engineer Level 1:…