Ace Architects employs two architects, each having a different area of specialization. Caitlin specializes in industrial commercial construction and Zachary specializes in residential construction. Ace expects to incur total overhead costs of $737,100 during the year and applies overhead based on annual salary costs. Caitlin is a senior partner, her annual salary is $168,750, and she is expected to bill 3,000 hours during the year. Zachary is a senior associate, his annual salary is $94,500, and he is expected to bill 2,800 hours during the year. a. Calculate the predetermined overhead rate. Predetermined Overhead Rate %
Q: Which of the following statements is correct regarding rental properties? A. Each rental…
A: CCA refers to capital cost allowance. This is the annual deduction of assets as per the Canadian…
Q: How do I check whether the general ledger dump is complete or not? What do I do? I just have a…
A: Journal Entries - Journal Entries are used to record transactions entered into by the company. It is…
Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…
A: Lets understand the basics. Single plantwide rate is as name suggest a single rate to overhead cost…
Q: 6. Suppose that the company’s minimum required rate of return on operating assets is 13% and that…
A: 6a. $1,786,200 6.b. $554,615 6.c. $2,304,815
Q: Which of the following describes the operating activities as shown in the statement of cash flows?
A: There are three activity in the cashflow statement which are as under : - Operating Activity -…
Q: Jamison Company gathered the following reconciling information in preparing its June bank…
A: The cash book's balance occasionally differs from the bank statement. Therefore, the business…
Q: n November 4, 2020, Blue Company acquired an asset (27.5 year residential real property) for…
A: The amount of decrease in value of assets due to the time is the depreciation and due to…
Q: e Lightning has an MSRP of $2,500. The Their fixed costs are $2,000,000. You are ther you should…
A: MSRP is manufacture suggested retail price . It is the price suggested for product by the producer…
Q: Which of the following represents one of the basic rights of stockholders? a. Stockholders may sell…
A: One of the basic rights of stockholders is "Stockholders may participate in management by voting on…
Q: On December 1, 2020, Mark began an auto repair shop, Mark Automotive. The following information…
A: Adjusting entries are those journal entries which are passed at the end of accounting period for the…
Q: ed and filed a joint tax return with her husband. Her AMTI is $1,182,000. What is the amount of AMT…
A: Answer : Because Olga's AMTI exceeds $1,079,800 she must phase out her exemption and is entitled to…
Q: Morgan Corporation has excess cash to invest and pays $100,000 to buy 7%, five-year bonds of Roberts…
A: Held-to-maturity instruments are the securities that are acquired by the organization with the…
Q: On July 1, Somers Inc. issued $200,000 of 10 %, 10-year bonds when the market rate was 12%. The…
A: Issue price of the bonds means the cash received from the issue of the bonds. Issue price of the…
Q: Calculate Dexter's capitalized interest on the student condominium complex for Year 1.
A: As per the relevant IFRS, Interest cost incurred on production or acquisition of the Qualifying…
Q: 3 Cost* $ 551,100 $ 235,500 $ 144,000 Price or Rate $ 10,150 F $ 3,200 U $ 4,400 F Efficiency $…
A: Variance is the difference between actual and standard cost. Actual Direct labour cost is the…
Q: Warner Company's year-end unadjusted trial balance shows accounts receivable of $118,000, allowance…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Worldwide Enterprises purchased a bond on June 30 of the current year for $100,000 and classified…
A: The correct answer is: (B) reported as a $2,500 unrealised holding gain in the Other Income and…
Q: 33. What is the increase in the contribution margin? a. P320,000 b. P200,000 c. P120,000 d. P80,000…
A: 1. Contribution Margin: (Step 2) In simple words, Contribution margin shows you the aggregate amount…
Q: Prepare journal entries for the following credit card sales transactions (the company uses the…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's…
A: Direct Materials Purchases Budget :Direct Materials Purchases Budget is prepared on the base of the…
Q: WEngageU is a specialist jeweller that designs, makes and sells high end engagement and wedding…
A: Current ratio is the ratio of entity's current assets to its current liabilities. It is a liquidity…
Q: Electro Company makes battery powered ebikes. They cost $1,600 to make which consists of $400 labor…
A: Given This year Electro sold 6,600 bikes Experience shows that 10% of bikes make a warranty claim…
Q: Beverly Hills, Inc. developed the following information in recording its bank statement for the…
A: A bank reconciliation statement aligns an organization's bank account with its financial documents…
Q: M acquired a home in 2015 for $300,000 and a cottage in 2019 for $200,000. In 2022 M sold the home…
A: If anybody sold land or building after possessing the land or building for more than 24 months then…
Q: How does the absentee/annual salaries ratio compare to the U.S. plant? Based on the data you have…
A: The cost of absentees means the losses faced by the company due to the absent of the employees from…
Q: 11. Lagawan Corp. Is a single product company that expects the following results for next year:…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Fischer Fabrication reported the following information concerning its direct materials: Direct…
A: Variance arises due to difference between actual costs and budgeted costs. The variance is favorable…
Q: u are the project manager for Becker Enterprises, LTD. and have been asked to analyze two…
A: When two projects have different economic life than projects can be compared based on uniform annual…
Q: Refer to the following list of liability balances at December 31, 2025. Accounts Payable Employee…
A: A company's long-term liabilities are its debts that won't be paid off for a year or longer. The…
Q: ome wooden grandstands with a probable life time of 15 years can be built with $50,000. Assuming an…
A: The capitalized cost is the present value of all cost that are going to occur in the life of…
Q: Esquire Incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the…
A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…
Q: Calculate Ltd was incorporated on 31 January 2020 with authorised capital as: 950 000 ordinary…
A: Authorised capital= 950000 ordinary shares And 440000 , 10% Preference shares Authorised Capital is…
Q: A company has four products in its inventory. Information about ending inventory is as follows:…
A: Journal entry is the procedure for initially documenting commercial transactions in the books of…
Q: Julia's Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has…
A: MSRP stands for "manufacturer's recommended retail price," which refers to the price that a…
Q: Puget Sound Divers is a company that provides diving services such as underwater ship repairs to…
A: Flexible Budget= It is the budget that adjust to the company's actual capacity. All the income and…
Q: 5- If the Excess cost over the book value was $190,000, assuming the inventory undervalued by…
A: Goodwill is an intangible asset associated with the purchase of one company by another. There are…
Q: Sandhill Limited reported the following selected information for the year ended March 31, 2024:…
A: Income Statement - Income Statement includes Income earned and Expense incurred during the financial…
Q: Forest Products, Incorporated, manufactures three products (FP-10, FP-20, and FP-40) from a single,…
A: a. Given the Joint Product costs = $242,000 Disposal cost of Product FP - 40 = $120,000 for every…
Q: what are some Recommendations on how government accounting may be improved in Guyana? be indeph and…
A: There are a number of ways in which government accounting in Guyana could be improved. Firstly, the…
Q: bond
A: The carrying value is face value along with unanortized premium or the difference in its face value
Q: Net revenues Standard warranty liability, end of year Charges incurred during the year Extended…
A: Journal entries in an accounting book serve as a record of financial activities for an organisation.…
Q: At the end of the current year, the bond accounts of Hobeen Services showed the following balances:…
A: On the retirement of bonds: There will be cash outflow. Liabilities would be decreased. any…
Q: Discuss the effects that hyper-inflation can have on the usefulness of financial statements, and…
A: Hyperinflation can have a number of effects on the usefulness of financial statements. For instance,…
Q: Determine whether the current sewing machine should be replaced. (Ignore the time value of money.)…
A: When an organization already possesses a certain asset and is contemplating changing with something…
Q: Four friends plan to form a corporation for purposes of constructing a shopping center. Charlie will…
A: Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…
Q: Wheat Corporation pays $524,000 to acquire 44% (100,000 shares) of the common stock of Grain…
A: Journal entries are the primary reporting of the business transactions in the books of accounts. It…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…
Q: On January 1, MM Company borrows $290,000 cash from a bank and in return signs an 4% installment…
A: Accounting Equation shows that the total of a company's assets are equal to the total liabilities…
Q: Required: Determine the new machine's NPV and indicate whether or not this is an acceptable…
A: 1. In the given case, we are required to find out the NPV of Investment. 2. In the given case ,…
Q: Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good…
A: Incremental Analysis: It is a technique of decision making used by the business to know to the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Pinnacle Consulting employs two CPAs, each having a different area of specialization. Judy specializes in tax consulting and Steve specializes in management consulting. Pinnacle expects to incur total overhead costs of $419,400 during the year and applies overhead based on annual salary costs. Judy is a senior partner, her annual salary is $225,000, and she is expected to bill 2,200 hours during the year. Steve is a senior associate, his annual salary is $124,500, and he is expected to bill 1,500 hours during the year. Required: Calculate the predetermined overhead rate. Assuming that the hourly billing rate should be set to cover the total cost of services plus a 25% markup, compute the hourly billing rates for Judy and Steve.A company employees two consultants who each have a different specialization. Caitlin specializes in industrial commercial construction and Zachary specializes in residential construction. The company expects to incur total overhead costs of $573,540 during the year and applies overhead based on annual salary costs. Caitlin's annual salary is $168,300, and she is expected to bill 2,400 hours during the year. Zachary's annual salary is $92,400, and he is expected to bill 2,200 hours during the year. Required: a. Calculate the predetermined overhead rate. b. Assuming that the hourly billing rate should be set to cover the total cost of services plus a 25% markup, compute the hourly billing rates for Caitlin and Zachary Complete this question by entering your answers in the tabs below. Required A Required B Calculate the predetermined overhead rate. Predetermined overhead rate %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
- Amy Andrews is a CPA who works as a managerial accounting consultant for a variety of firms. To determine her hourly rate, Amy uses a cost-plus pricing system, which she updates each year. The hourly cost of her assistant (including taxes and benefits) is $18, the hourly cost of her office space is $3, the hourly cost of her marketing and other overhead materials is $5, and Amy's own hourly salary (again, including taxes and benefits) is $84. Amy adds a 30% premium to her costs. What is her hourly rate using a cost-plus pricing strategy?Amy Andrews is a CPA who works as a managerial accounting consultant for a variety of firms. To determine her hourly rate, Amy uses a cost-plus pricing system, which she updates each year. The hourly cost of her assistant (including taxes and benefits) is $18, the hourly cost of her office space is $3, the hourly cost of her marketing and other overhead materials is $5, and Amy's own hourly salary (again, including taxes and benefits) is $84. Amy adds a 30% premium to her costs. What is her hourly rate using a cost-plus pricing strategy? 1:02 Multiple Choice $115 $143 $110 $140 Mc Graw MacBook Pro %23 %24 & 2 3 4 6 7 8. R. Y P D H J K V N mmand command option O O OMagnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 5 percent of salary. Kevin’s base salary is $180,000 and Michelle’s is $240,000. The target profit for this year is $6 million. Kevin has read about a new manufacturing technique that would increase annual profit by 20 percent. He is unsure whether to employ the new technique this year, wait, or not employ it at all. Using the new technique will not affect the target. Required: a. Suppose that profit without using the technique this year will be $6 million. By how much will Kevin’s and Michelle’s bonus change if Kevin decides to employ the new technique? b. Suppose that profit without using the technique this year…
- Brenda Sheldon, CPA, pays her new staff accountant, Abby , a salary equivalent to $21 per hour while Brenda receives a salary equivalent to $37 per hour. The firm's predetermined indirect cost allocation rate for the year is $11 per hour. Sheldon bills for the firm's services at 34% over cost. Assume Brenda works 6 hours and Abby works 8 hours preparing a tax return for Mikayla Touchstone. 1. What is the total cost of preparing Touchstone's tax return? 2. How much will Brenda bill Touchstone for the tax work?Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 5 percent of salary. Kevin's base salary is $270,000 and Michelle's is $330,000. The target profit for this year is $9 million. Kevin has read about a new manufacturing technique that would increase annual profit by 20 percent. He is unsure whether to employ the new technique this year, wait, or not employ it at all. Using the new technique will not affect the target. Required: a. Suppose that profit without using the technique this year will be $9 million. By how much will Kevin's and Michelle's bonus change if Kevin decides to employ the new technique? b. Suppose that profit without using the technique this year will…Mary Tan is the controller for Duck Associates, a property management company in Portland, Oregon. Each year, Tan and payroll clerk Toby Stock meet with the external auditors about payroll accounting. This year, the auditors suggest that Tan consider outsourcing Duck Associates’s payroll accounting to a company specializing in payroll processing services. This would allow Tan and her staff to focus on their primary responsibility: accounting for the properties under management. At present, payroll requires 1.5 employee positions—payroll clerk Toby Stock and a bookkeeper who spends half her time entering payroll data in the system. Tan considers this suggestion, and she lists the following items relating to outsourcing payroll accounting: The current payroll software that was purchased for $4,000 three years ago would not be needed if payroll processing were outsourced. Duck Associates’s bookkeeper would spend half her time preparing the weekly payroll input form that is given to the…
- Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 6 percent of salary. Kevin's base salary is $330,000 and Michelle's is $390,000. The target profit for this year is $5 million. Kevin has read about a new manufacturing technique that would increase annual profit by 20 percent. He is unsure whether to employ the new technique this year, wait, or not employ it at all. Using the new technique will not affect the target. Required: a. Suppose that profit without using the technique this year will be $5 million. By how much will Kevin's and Michelle's bonus change if Kevin decides to employ the new technique? b. Suppose that profit without using the technique this year will…Mary Tan is the controller for Duck Associates, a property management company in Portland, Oregon. Each year, Tan and payroll clerk Toby Stock meet with the external auditors about payroll accounting. This year, the auditors suggest that Tan consider outsourcing Duck Associates' payroll accounting to a company specializing in payroll processing services. This would allow Tan and her staff to focus on their primary responsibility: accounting for the properties under management. At present, payroll requires 1.5 employee positions—payroll clerk Toby Stock and a bookkeeper who spends half her time entering payroll data in the system. Tan considers this suggestion, and she lists the following items relating to outsourcing payroll accounting: The current payroll software that was purchased for $4,000 three years ago would not be needed if payroll processing were outsourced. Duck Associates' bookkeeper would spend half her time preparing the weekly payroll input form that is given to the…Mary Tan is the controller for Duck Associates, a property management company in Portland, Oregon. Each year, Tan and payroll clerk Toby Stock meet with the external auditors about payroll accounting. This year, the auditors suggest that Tan consider outsourcing Duck Associates’ payroll accounting to a company specializing in payroll processing services. This would allow Tan and her staff to focus on their primary responsibility: accounting for the properties under management. At present, payroll requires 1.5 employee positions: payroll clerk Toby Stock and a bookkeeper who spends half her time entering payroll data in the system. Tan considers this suggestion, and she lists the following items relating to outsourcing payroll accounting: a. The current payroll software that was purchased for $4,000 three years ago would not be needed if payroll processing were outsourced. b. Duck Associates’ bookkeeper would spend half her time preparing the weekly payroll input form that is…