FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Textbook Question
Chapter 15, Problem 1BTN
ETHICS CHALLENGE P3
BIN 15-3 Assume that your company sells portable housing to both general contractors and the government. It sells jobs to contractors on a bid basis. A contractor asks for three bids from different manufacturers. The combination of low bid and high quality wins the job. However, jobs sold to the government are bid on a cost-plus basis. This means price is determined by adding all costs plus a profit based on cost at a specified percent, such as 10%. You observe that the amount of
Point: Students could compare responses and discuss differences in concerns with allocating overhead.
Required
Write a half-page memo to your company’s chief financial officer outlining your concerns with overhead allocation.
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Question 3
Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs.
NOTE: No need to enter comma between numbers
Required
Computation for 10,000 units
What amount should have been inccrued if company produce 10,000 units
What amount should have been inccrued if company purhcase 10,000 units from outside
What amount company save if company make 10,000 cushions
ion list
Requirements
2.
3.
1. Compute Pelican Design's direct labor rate and its predetermined overhead
allocation rate for 2024.
K-
Compute the total cost of each job.
If Jackson wants to earn profits equal to 20% of service revenue, what fee
should she charge each of these two clients?
4. Why does Pelican Design assign costs to jobs?
estion 6
estion 7
Pelican Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing system in
which each client is a different job. Pelican Design assigns direct labor, licensing costs, and travel costs
directly to each job. It allocates indirect costs to jobs based on a predetermined overhead allocation rate,
computed as a percentage of direct labor costs.
Print
Done
First, enter the direct costs for each job. Then
Pelican Desig
Estimated Cost of Delicious Treats a
Data table
Direct labor hours (professionals)
Direct labor costs (professionals)
Support staff salaries
Computer leases.
Office supplies
Office rent
Print
At…
1 Q6:
12345678
517336
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G
H
Bobby's contracting creates individual pieces of interior design for clients.
Each is different as they have different requirements and stylizing.
Bobby is trying to sort out his pricing, and aims for a 35% margin on top of all costs.
Manufacturing OH is allocated based on 20$ per DLHour and this rate is expected for the full financial period.
80 hours were spent on this job. There are no opening inventories, and the client is looking for a price quote.
The boss told you not to worry about the opening or ending balances.
Post the manufacturing entries in T-accounts provided for
A) the end of year OH entry,
B) movement of inventory, and
C) revenue made in period of $500,000.
Actual OH
Work in Progress (WIP)
$
60,000
100,000
200,000
Finished Goods
COGS
$
5,000
50,000
150,000
205,000
Budgeted OH
Revenue
200,000 OH
DM
DL
OH
Chapter 15 Solutions
FINANCIAL+MANAG.ACCT.
Ch. 15 - Prob. 8QSCh. 15 - Prob. 9QSCh. 15 - Prob. 10QSCh. 15 - Prob. 11QSCh. 15 - Prob. 3PSACh. 15 - Prob. 4PSACh. 15 - Prob. 3PSBCh. 15 - Prob. 4PSBCh. 15 - Prob. 1DQCh. 15 - Some companies use labor cost to apply factory...
Ch. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - GOOGLE Google uses a “time ticket” for some...Ch. 15 - What events cause debits to be recorded in the...Ch. 15 - GOOGLE Google applies overhead to product costs....Ch. 15 - Prob. 10DQCh. 15 -
11. Why must a company use predetermined...Ch. 15 - Prob. 12DQCh. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - ETHICS CHALLENGE P3 BIN 15-3 Assume that your...Ch. 15 - Prob. 3BTN
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Ethical Decision Making in Management; Author: GreggU;https://www.youtube.com/watch?v=6UrBO-cL27Q;License: Standard Youtube License