Metlife Law Office employ 12 full-time attorneys and 5 paraprofessionals. Budgeted variable costs include $100,000 for each
Question:
Metlife Law Office employ 12 full-time attorneys and 5 paraprofessionals. Budgeted variable costs include $100,000 for each attorney and $30,000 per paraprofessional. For 2001, fixed costs were budgeted at $250,000, but actually amounted to $300,000. Actual variable costs were $110,000 for each attorney and $30,000 for each paraprofessional.
Variable and fixed costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours (a single rate method). Total budgeted labor-hours were 50,000; however, actual labor-hours were 60,000.
How much should the client be billed in a normal costing system which uses budgeted rate and cost allocations are based on actual data, when 1,000 professional labor-hours were used?
Group of answer choices:
$27,000
$32,000
$34,800
$37,400
The TSLA Corporation currently uses a manufacturing facility costing $400,000 per year; 80% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 20% of the facility and increase the overall costs of maintaining the space by 5%.
If the stand-alone method were used to allocate the common cost, what amount of cost would be allocated to the TSLA Corporation?
Answer choices:
$336,000
$400,000
$84,000
$320,000
The TSLA Corporation currently uses a manufacturing facility costing $400,000 per year; 80% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 20% of the facility and increase the overall costs of maintaining the space by 5%.
If the incremental method were used to allocate the common cost, what amount of cost would be allocated to the start-up business?
Group of answer choices:
$20,000
$100,000
$80,000
$84,000
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren