Sagar Fulton Construction is a general contractor for large construction projects. The budget costs and the time to reach a particularpercentage of completion (in months) follows. Also shown are the actual results (cost and months) up to the latest report, which was atthe end of month 19.PercentageCost ($008)Months to ReachCompleteBudgetActualBudgetActual0%0805%2,236774410%3,1621,5451615%3,8732,3081820%4,4723,0612925%5,0003,79931030%5,4774,5201135%5,9165,22141240%6,3255,89951345%6,7086,55361350%7,0717,18271455%7,4167,78381560%7,7468,35691565%8,0628,900101670%8,3679,416121775%8,6609,902131780%8,94410,361141885%9,22010, 791161890%9,48711,194171995%9,74719100%10,00020Required:a. At this time, what is the current cost over- (under-) run on the project?Note: Enter your answer in dollars and not in thousands of dollars.b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion?a. Current costb. Percentage of completion96

Introduction:Cost performance in project management is often measured by comparing the budgeted cost…

2,236 774 4 3,162 1,545 6 3,873 2,308 8 4,472 3,061 2 5,000 3,799 10 5,477 4,520 11 5,916 5,221 4 12 6,325 5,899 5 13 6,708 6,553 6 13 7,071 7,182 7 14 7,416 7,783 15 7,746 8,356 9 15 8,062 8,900 10 8,367 9,416 12 12 16 17

2,236 774 4 3,162 1,545 6 3,873 2,308 8 4,472 3,061 2 5,000 3,799 10 5,477 4,520 11 5,916 5,221 4 12 6,325 5,899 5 13 6,708 6,553 6 13 7,071 7,182 7 14 7,416 7,783 15 7,746 8,356 9 15 8,062 8,900 10 8,367 9,416 12 12 16 17

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...

See similar textbooks

Related questions

Q: The balance sheet data of Pina Company at the end of 2025 and 2024 follow. 2025 2024 Cash $29,900…

A: The cash flow statement summarizes a company's cash inflows and outflows from its operating,…

Q: Neptune Company has developed a small inflatable toy that it is anxious to introduce to its…

A: Given in the question:Own ProductionSelling Price Per unit$9Variable Cost per Unit$5Fixed Costs per…

Q: Controls that measure variables that influence future profitability are called Select one: a. output…

A: Controls are necessary part to see whether the plans are going as per direction or not. The controls…

Q: Mike Mulligan wants to expand his heavy equipment business into excavation. He plans to buy a used…

A: Initial Investments (Year 0):Purchase of excavator: -$300,000Inventory of spare parts: -$10,000Total…

Q: The following selected transactions occurred during 2024 and 2025 for Arabian Importers. The company…

A: Notes are also known as promissory notes which are a sort of debt instrument stating a promise to…

Q: A debt of $52000 with interest at 9.6% compounded quarterly is to be repaid by equal payments at the…

A: The objective of the question is to calculate the size of the quarterly payments, total amount paid…

Q: Computer Experts, Inc., ended 2019 with cash of $30,000. During 2020, Computer Experts earned net…

A: Cash flow statement means the statement which shows the cash inflow and outflow during the specified…

Q: Required information [The following information applies to the questions displayed below.] Tree…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. The gross profit…

Q: The date is January 10, 2023, and Maryton Hotels’ CFO George Smith is looking with dismay at his…

A: Note:"Since you have asked a question with more than three sub-parts, the first three sub-parts were…

Q: At the beginning of Year 3 Omega Company had a $58,000 balance in its accounts receivable account…

A: To determine the amount of uncollectible accounts expense shown on the Year 3 income statement for…

Q: A company has decided to purchase equipment, needing to borrow $100,000 from its local bank to make…

A: To calculate the first monthly payment for the 120-month installment note with 8% interest, we can…

Q: Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is…

A: Solution:-The query involves the application of the lower cost or market (LCM) or net realizable…

Q: On January 1, 2027, Sheridan Company had a balance of $417,000 of goodwill on its balance sheet that…

A: A journal entry is a record of the business transactions in the accounting books of a business. It…

Q: depreciation expense for the second year of its useful life using the double - declining

A: The double declining method of depreciation is an accelerated depreciation method.It counts the…

Q: ! Required information [The following information applies to the questions displayed below] Freeman…

A: Journal Entries :Journal entries are the primary step in the book keeping. Companies record the…

Q: Vishnu

A: The objective of the question is to prepare a factory overhead budget for Miami Solar for the month…

Q: Overhead information for Wilts Company is presented. Actual fixed overhead, $13,110 Actual variable…

A: Variance analysis is the method under the standard costing system which determines the variance…

Q: An electrical utility needs to generate 6,700 megawatts of electricity today. It has five generators…

A: An electrical utility having five generators needs to generate 6,700 megawatts of electricity. There…

Q: ! Required information [The following information applies to the questions displayed below.] Julie…

A: The Child and Dependent Care Credit is a tax credit provided by the Internal Revenue Service (IRS)…

Q: X Your answer is incorrect. Suppose that during 2022, Cypress Semiconductor Corporation reported net…

A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…

Q: i need the answer quickly

A: Accounting equation:The accounting equation refers to the statement that shows the total assets…

Q: Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir,…

A: Partnership is a type of business in which there are more than one person who carry out the business…

Q: Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded 250…

A: The relative sales value method is used to make the allocation of joint costs among the products.…

Q: Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The…

Q: [The following information applies to the questions displayed below.] The following data were…

A: A financial statement that displays the revenue and expenses of the business is called an income…

Q: During 2021, Raines Umbrella Corporation had sales of $760,000. Cost of goods sold, administrative…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: if a company has $10,000 in cash, $7,000 in A/R, S2,000 in prepaid expenses, S8,000 in inventory,…

A: The working capital is calculated as the difference between the current assets and current…

Q: Required information [The following information applies to the questions displayed below.] On…

A: An amortization schedule is presented as a table that outlines key loan characteristics like payment…

Q: During 2024, its first year of operations, Hollis Industries recorded sales of $11,600,000 and…

A: In the statement of profit and loss account company records net revenue by deducting sales return…

Q: ices Required information Use the following information for the Quick Studies below. (Algo) Rafner…

A: Overhead allocation is the apportionment of indirect costs to produced goods. Overhead allocation,…

Q: Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two…

A: Overhead : Indirect costs incurred while producing goods or services. Overhead costs cannot be…

Q: Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The…

A: The CVP analysis is done by the companies to estimate the units that will bring the desired profit…

Q: Mrs. Shine was registered in Jamaica as a sole trader in 2015. To grow her practice Mrs. Shine…

A: Mrs. Shine: Tax Payable of $1,822,524Mr. Rain: Tax Refundable of $86,976Explanation:1. Calculate the…

Q: MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost…

A: The budget is prepared to estimate the requirements for the period. The production budget is…

Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…

A: The contribution format of an income statement is prepared by the company when they want to…

Q: Adams Company produces commercial gardening equipment. Since production is highly automated, the…

A: ACTIVITY BASED COSTINGUsing activity-based costing to measure performance is quite effective.Agency…

Q: Victor Mineli, the new controller of Crane Company, has reviewed the expected useful lives and…

A: Answer:- Depreciation expense meaning:- This refers to the amount that deterioration, upkeep, and…

Q: Required information [The following information applies to the questions displayed below.] On…

A: Adjusting entries are journal entries made at the end of an accounting period to update certain…

Q: On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders'…

A: Shareholder's EquityThe amount available to the shareholders in the company is called shareholder's…

Q: Keith Williams and Brian Adams were students when they formed a partnership several years ago for a…

A: A partnership agreement is a contract between one or more businesses or individuals who are choosing…

Q: Statement of Cash Flows (Indirect Method) Use the following information regarding the Lund…

A: Financial Statements:Financial statements consist of combination of the following1 . Income…

Q: Blue Wave Company budgets the following unit sales for the next four months: September, 4,000 units;…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

Q: Pharoah Company expects to produce 51,000 units of product XLA during the current year. Budgeted…

A: The budget is prepared to compare the actual and budgeted costs data. The variance can be classified…

Q: A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires…

A: A cash budget is a budget that provides information about the company's projected cash inflows and…

Q: Changes in the balance sheet accounts at June 30, 20X1 and 20X2 for the Poker Company are presented…

A: An accounting statement that depicts the inflow and outflow of cash from a business over a given…

Q: Clarendon Corporation has a $5 million liability at December 31, Year 1, of which $1 million is…

A: In accounting, liabilities represent fiscal obligations or debts that a company owes to external…

Q: Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always…

A: Partnership means where two or more person comes together to form the business and share profit and…

Q: Ayayai Corporation makes two products, footballs and baseballs. Additional information follows:…

A: Optimal Production MixFootballs: 400 unitsBaseballs: 400 units + 4600 units = 5000 unitsAsk your…

Q: Luxury auto depreciation limits Test - Annual Federal Tax Refresher (AFTR) (2023) O $11,700 O…

A: Depreciation allowance is a term commonly used in accounting to refer to the process of spreading…

Q: Bourne Incorporated reports a cash balance at the end of the month of $2,595. A comparison of the…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Question

Sagar

Fulton Construction is a general contractor for large construction projects. The budget costs and the time to reach a particular
percentage of completion (in months) follows. Also shown are the actual results (cost and months) up to the latest report, which was at
the end of month 19.
Percentage
Cost ($008)
Months to Reach
Complete
Budget
Actual
Budget
Actual
0%
0
8
0
5%
2,236
774
4
10%
3,162
1,545
1
6
15%
3,873
2,308
1
8
20%
4,472
3,061
2
9
25%
5,000
3,799
3
10
30%
5,477
4,520
11
35%
5,916
5,221
4
12
40%
6,325
5,899
5
13
45%
6,708
6,553
6
13
50%
7,071
7,182
7
14
55%
7,416
7,783
8
15
60%
7,746
8,356
9
15
65%
8,062
8,900
10
16
70%
8,367
9,416
12
17
75%
8,660
9,902
13
17
80%
8,944
10,361
14
18
85%
9,220
10, 791
16
18
90%
9,487
11,194
17
19
95%
9,747
19
100%
10,000
20
Required:
a. At this time, what is the current cost over- (under-) run on the project?
Note: Enter your answer in dollars and not in thousands of dollars.
b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion?
a. Current cost
b. Percentage of completion
96

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction and Solution Planning.:-

VIEW

Step 2: (a) Calculation of Current cost over (Under) run on the project:-

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and equipment depreciation of 18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
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
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
For the last quarter of 2020, Carica’s cost records indicate the following: Materials Requisitions (MR) Utility Services (US) Machining Assembly Total Budgeted overhead costs before any inter- department cost allocations $200,000 $1,000,000 $5,456,000 $7,458,000 $14,114,000 Support work supplied by MR (Number of requisitions) 0 25% 40% 35% 100% Support work supplied by US (Power costs) 10% 0 30% 60% 100% Questions: 1. Allocate the two support departments’ costs to the two operating departments using the following methods: a.Direct method. b. Step-down method (allocate MR first). c. Step-down method (allocate US first) d. The Algebraic. Answer quickly
The cost formula for the maintenance department of Rambo Limited is $19,200 per month plus $7.50 per machine hour used by the production department. Required: a. Calculate the maintenance cost that would be budgeted for a month in which 6,600 machine hours are planned to be used. b. Prepare an appropriate performance report for the maintenance department assuming that 7,100 machine hours would be used in the month of May and that the total actual maintenance cost incurred in May was $68,950. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the maintenance cost that would be budgeted for a month in which 6,600 machine hours are planned to be used. Maintenance cost
5. A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 ? per ?. Budgeted direct labor: $1,500,000 ? per ?. Estimated machine hours: 100,000 ? per ?. PLEASE NOTE: Predetermined overhead rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $12,345.67). The rates will include their proper label according to the textbook examples (no abbreviations).
5) Hakan&Ahmet Manufacturing Company uses applied overhead rate for allocating its manufacturing overhead to its products. The following information is estimated for the upcoming year of 2024: BUDGETED COSTS AND ESTIMATED ACTIVITY LEVELS Budgeted MOH Budgeted Direct Materals Cost Budgeted Direct Labor Cost Estimated Direct Labor Hours Estimated Machine Hours AMOUNTS and HOURS $ 720,000 $ 600,000 $ 480,000 72,000 dlh 120,000 mh At the end of the first week of January 2024, the company completed only one job order. Actual costs and actual usage of dlh and mh for this unit were as follows: Job Order Direct Material Cost ($) 100 GRS-34 Direct Labor Direct Labor Cost ($) 150 Hours 15 Machine Hours 30 Q1) Calculate a predetermined manufacturing overhead rate (applied overhead rate) by using each of the cost drivers of "direct materials cost", "direct labor hours", "direct labor costs" and "machine hours". Q2) By using each of these rates, calculate the unit cost of this job order.
A company currently in the 3rd month of a 2 year project. The financial committee would like to have a cost status report. At this stage of the project there is an estimated planned value of 37500. The rate of performance is determined at 95% and the current costs have accumulated to 400000. Determine the Budget at completion)
The cost formula for the maintenance department of Rainbow Ltd. is $19,400 per month plus $7.70 per machine hour used by the production department.Required:a. Calculate the maintenance cost that would be budgeted for a month in which 6,700 machine hours are planned to be used. b. Prepare an appropriate performance report for the maintenance department assuming that 7,060 machine hours were actually used in the month of May and that the total maintenance cost incurred was $68,940. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
A company estimates its manufacturing overhead will be $525,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? When required, round your answers to nearest cent. A. Budgeted direct labor hours: 42,000 per direct labor hour B. Budgeted direct labor expense: $1,050,000 per direct labor dollar C. Estimated machine hours: 70,000 per machine hour
The following extract is taken from the maintenance cost budget: Maintenance hours 8,300 8,520 Maintenance cost £211,600 £216,440 The budget cost allowance for maintenance costs for the latest period, when 8,427 maintenance hours were worked, is $_____
SIS Technologies currently allocates insurance costs on the basis of direct labor hours. If the direct labor hours for departments A, B, and C are expected to be 3000, 9000, and 5000, respectively, this year, determine the allocation to each department based on an indirect cost budget of $34,000.