From April 1 through October 31, Will County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. TheCounty Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The followinginformation is available regarding current-year operations:MonthAprilMayJuneJulyAugustSeptemberOctoberMiles Mowed LaborCostsand Cleaned350 $4,000300 3,750400 4,5002502,750375 4,250200 2,500100 2,400Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs.Monthly labor costs = $ 1700 + $7 XPlot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost-estimating equation for monthly labor costs.Monthly labor costs = $$XAdjust the equation developed in requirement (b) to incorporate the effect of an anticipated 7 percent increase in wages.Monthly labor costs = $X$3

The High-low method is the formula that helps in determining variable and fixed costs with respect…

From April 1 through October 31, Will County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Miles Mowed Labor Costs 350 $4,000 300 3,750 400 4,500 250 2,750 375 4,250 200 2,500 100 2,400 Month and Cleaned April May June July August September October Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs - $ 1700 + $ 7 X Plot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost- estimating equation for monthly labor costs. Monthly labor costs - $ X Adjust the equation developed in requirement (b) to incorporate the effect of an anticipated 7 percent increase in wages. Monthly labor costs $ +$ X

From April 1 through October 31, Will County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Miles Mowed Labor Costs 350 $4,000 300 3,750 400 4,500 250 2,750 375 4,250 200 2,500 100 2,400 Month and Cleaned April May June July August September October Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs - $ 1700 + $ 7 X Plot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost- estimating equation for monthly labor costs. Monthly labor costs - $ X Adjust the equation developed in requirement (b) to incorporate the effect of an anticipated 7 percent increase in wages. Monthly labor costs $ +$ X

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 42E: Source Documents For each of the following independent situations, give the source document that...

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E14-23. Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department hires temporary em- ployees to mow and clean the right-of-way along county roads. Assume that the County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations. Month April May. June July. August September October. Miles Mowed Labor and Cleaned Costs 240 $6,800 305 7,680 325 8,310 275 7,200 220 6,550 200 5,760 75 4,960 REQUIRED a. Use the information from the high- and low-volume months to develop a cost-estimating equa- tion for monthly labor costs. b. Plot the data on a scatter diagram. Hint: In Excel, highlight the data to be included in the chart. Open the insert tab and select the Scatter chart in the Charts group. Using the information from representative high- and low-volume months, use the high-low method to develop a cost-…
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
Dec. Dec. Additional job order activities during this period included: 2 Dec. 12 Dec. Waterways has two major public-parkprojects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain which will require special-order sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December. Dec. 13 1 Purchased raw materials from Durbin Supply Company on account for $46,816. Issued $35,200 of direct materials from the company's inventory to jobs other than K52 and J57 and $2,640 of indirect materials. Raw materials were requisitioned from the company's inventory on December 2 for $4,458; on December 8 for $930; and on December 14 for $3,042. In each instance, two-thirds (2/3) of these materials were for J57 and the rest for K52. 18 Dec. 21 Six time tickets were turned in for these two projects for a total amount of 18…
Please help me by showing your solution in good accounting form. Thank you! MOC Construction Company started work on three job sites during the current year. Any costs incurred are expected to be recoverable. Data relating to the three jobs are given below: Site Contract Price Cost Incurred Estimated Costs to Complete Billings on Contract Collections on Billings 1 5 000 000 3 750 000 - 5 000 000 5 000 000 2 7 000 000 1 000 000 4 000 000 900 000 900 000 3 2 500 000 1 000 000 1 000 000 1 500 000 1 000 000 If the company records revenue over time, how much must be shown as a current asset in the balance sheet of MOC Construction Company as of December 31?A. 5,500,000 C. 250,000B. 500,000 D. 100,000 If the company records revenue at a point in time, how much must be shown as a current asset in the balance sheet of MOC Construction Company as of December 31?A. 5,100,000 C. 250,000B. 500,000 D. 100,000
Hillcrest Publishing Co. established the following cost pools for 2018 support costs: Cost Pool Machine setup Inspection Cost Driver Setup hours Number of inspections Amount Number $25,000 $22,000 $18,000 $16,000 900 400 Maintenance Machine hours 9,800 Materials handling Number of moves 200 The following data pertains to two jobs performed during 2018: Job #60 1,450 $11,510 $8,220 Job #70 1,060 $8,890 $6,780 Item Number of units Direct materials cost Direct labor cost Machine hours 750 610 Direct labor hours 595 475 Number of material moves Number of setup hours Number of inspections 44 17 72 39 36 21 (1) Determine the unit cost of Job #60 using machine hrs. to allocate all support costs: $ (2) Determine the unit cost of Job #70 using activity based costing: $
Source Documents For each of the following independent situations, give the source document that would be referred to for the necessary information. Required: 1. Direct materials costing 460 are requisitioned for use on a job. 2. Greiners Garage uses a job-order costing system. Overhead is applied to jobs based on direct labor hours. Which source document gives the number of direct labor hours worked on Job 2004-276? 3. Pasilla Investigative Services bills clients on a monthly basis for costs to date. Job 3-48 involved an investigator following the clients business partner for a week by automobile. Mileage is billed at number of miles times 0.75. 4. The foreman on the Jackson job wonders what the actual direct materials cost was for that job.
CS Company started work on three job sites during the current year. Any costs incurred are expected to be recoverable. Data relating to the three jobs are given below: Site Contract Cost Estimated Costs Billings on Collections on Price Incurred to Complete Contract Billings 5,000,000 1 5,000,000 3,750,000 5,000,000 2 7,000,000 1,000,000 4,000,000 1,000,000 900,000 1,500,000 900,000 1,000,000 3 2,500,000 1,000,000 If the company records revenue at a point in time, how much must be shown as current asset in the balance sheet of MOC Construction Company as of December 31? A. 5,100,000 B. 500,000 C. 250,000 D. 100,000
The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below: Standard Standard Rate Standard Cost Hours Motor tune-up 2.50 $29.00 $72.50 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 54 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: $ 120 F $ 170 U Labor rate variance Labor spending variance Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.) 1. Actual labor hours : hours 2. Actual hourly rate per hour
The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below: Standard Hours Standard Rate Standard Cost Motor tune-up 2.50 $31.00 $77.50 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 56 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance $ 146 F Labor spending variance $ 102 U Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.)
Hillcrest Publishing Co. established the following cost pools for 2018 support costs: Cost Pool Machine setup Amount $25,000 $22,000 $18,000 $16,000 Cost Driver Setup hours Number of inspections Number 900 Inspection Maintenance 400 Machine hours 9,800 Materials handling Number of moves 200 The following data pertains to two jobs performed during 2018: Job #60 1,450 $11,510 $8,220 Job #70 1,060 $8,890 $6,780 610 Item Number of units Direct materials cost Direct labor cost Machine hours 750 Direct labor hours 595 475 Number of material moves Number of setup hours Number of inspections 44 17 72 39 36 21 (1) Determine the unit cost of Job #60 using machine hrs. to allocate all support costs: $
Hillcrest Publishing Co. established the following cost pools for 2018 support costs: Cost Pool Machine setup Amount $25,000 $22,000 $18,000 $16,000 Cost Driver Setup hours Number of inspections Number 900 Inspection Maintenance 400 Machine hours 9,800 200 Materials handling Number of moves The following data pertains to two jobs performed during 2018: Job #60 1,450 $11,510 $8,220 Job #70 1,060 $8,890 $6,780 Item Number of units Direct materials cost Direct labor cost Machine hours 750 610 Direct labor hours 595 475 Number of material moves 44 17 Number of setup hours Number of inspections 72 39 36 21 Determine the unit cost of Job #70 using activity based costing: $
cS Company started work on three job sites during the current year. Any costs incurred are expected to be recoverable. Data relating to the three jobs are given below: Estimated Costs to Complete Site Contract Cost Billings on Collections on Price Incurred Contract Billings 5,000,000 3,750,000 5,000,000 5,000,000 2 7,000,000 1,000,000 4,000,000 900,000 900,000 3 2,500,000 1,000,000 1,000,000 1,500,000 1,000,000 If the company records revenue over time, how much must be shown as current asset in the balance sheet of MOC Construction Company as of December 31? A. 5,500,000 B. 500,000 C. 250,000 D. 100,000