Sofa Gomez runs a mobile pet grooming service. She charges $26 direct labor per grooming hour....

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Sofa Gomez runs a mobile pet grooming service. She charges $26 direct labor per grooming hour. She applies overhead to jobs on the basis of grooming hours. She predicts 860 grooming hours for the year. Her estimated overhead costs for the year follow. Van depreciation Van maintenance $ 8,440 Van insurance expense 1,320 Indirect materials $ 1,060 Tool depreciation 660 Other overhead $ 410 1,010 1. Compute the predetermined overhead rate using estimated grooming hours. 2. Sofa has been asked to groom 3 large dogs. She expects this job to require a total of 15 direct labor grooming hours. Compute her total cost (direct labor plus applied overhead) for this job. 3. If Sofa targets a markup of 20% on the total cost for each job, what price should she quote for the job in part2? 1. Predetermined overhead rate 2. Total job cost 3. Price quote Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials used (in March) Direct labor used (in March). $ 27,000 23,000 Overhead applied (March) 11,500 $ 41,000 14,000 7,000 Costs during April Direct labor used Overhead applied Direct materials used 139,000 Status on April 30 104,000 ? Finished (sold) 210,000 $ 115,000 151,000 101,000 ? ? Finished (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $86,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $382,000. c. Actual overhead costs incurred in April are indirect materials, $59,000; indirect labor, $26,000; factory rent, $36,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $675,000 cash in April. Required: 1. Determine the amount of overhead applied to each job in April. Predetermined overhead rate Overhead applied 306 0.50 307 0.50 308 April Total 0.50 0.50 Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March) Direct labor used (in March). Overhead applied (March) Costs during April Direct labor used Overhead applied Direct materials used Status on April 30 Job 306 Job 307 Job 308 $ 27,000 23,000 11,500 $ 41,000 14,000 7,000 139,000 104,000 ? Finished (sold) 210,000 $ 115,000 151,000 101,000 ? ? Finished (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $86,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $382,000. c. Actual overhead costs incurred in April are indirect materials, $59,000; indirect labor, $26,000; factory rent, $36,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $675,000 cash in April. 2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31). Job 306 Job 307 March Direct materials $ 27,000 41,000 Direct labor 23,000 14,000 Overhead applied 11,500 7,000 Work in process, beginning April Direct materials Direct labor Overhead applied Costs added in April Job 308 April Total 139,000 104,000 210,000 151,000 115,000 464,000 101,000 356,000 Total costs Status on April 30 Finished (sold) Finished (unsold) In process April 30 cost included in: Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials used (in March) Direct labor used (in March) $ 27,000 23,000 Overhead applied (March) 11,500 $ 41,000 14,000 7,000 Costs during April Direct materials used 139,000 Direct labor used Overhead applied Status on April 30 104,000 ? Finished (sold) 210,000 $ 115,000 151,000 101,000 ? Finished (unsold) ? In process Additional Information a. Raw Materials Inventory has a March 31 balance of $86,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $382,000. c. Actual overhead costs incurred in April are indirect materials, $59,000; indirect labor, $26,000; factory rent, $36,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $675,000 cash in April. 4. Prepare a schedule of cost of goods manufactured for the month end April 30. MARCO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Total manufacturing costs Total cost of work in process Cost of goods manufactured Listed below are costs of services provided by an airline company. Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time. Classify each cost as direct, indirect, selling, or general and administrative. Cost 1. Salesperson commissions 2. Office headquarters rent 3. Office equipment insurance 4. Travel agent salaries 5. Co-pilot wages 6. Advertising 7. Beverages served on plane 8. Accounting manager salary Classification Selected costs related to Apple's iPhone are listed below. Classify each cost as either direct materials, direct labor, factory overhead, selling expenses, or general and administrative expenses. 1. Salary of chief executive officer 2. Depreciation on office equipment 3. Advertising campaigns 4. Display screen 5. Battery component 6. Wages for retail store salesperson 7. Office building insurance used up 8. Uniforms provided for each factory worker Sofa Gomez runs a mobile pet grooming service. She charges $26 direct labor per grooming hour. She applies overhead to jobs on the basis of grooming hours. She predicts 860 grooming hours for the year. Her estimated overhead costs for the year follow. Van depreciation Van maintenance $ 8,440 Van insurance expense 1,320 Indirect materials $ 1,060 Tool depreciation 660 Other overhead $ 410 1,010 1. Compute the predetermined overhead rate using estimated grooming hours. 2. Sofa has been asked to groom 3 large dogs. She expects this job to require a total of 15 direct labor grooming hours. Compute her total cost (direct labor plus applied overhead) for this job. 3. If Sofa targets a markup of 20% on the total cost for each job, what price should she quote for the job in part2? 1. Predetermined overhead rate 2. Total job cost 3. Price quote Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials used (in March) Direct labor used (in March). $ 27,000 23,000 Overhead applied (March) 11,500 $ 41,000 14,000 7,000 Costs during April Direct labor used Overhead applied Direct materials used 139,000 Status on April 30 104,000 ? Finished (sold) 210,000 $ 115,000 151,000 101,000 ? ? Finished (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $86,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $382,000. c. Actual overhead costs incurred in April are indirect materials, $59,000; indirect labor, $26,000; factory rent, $36,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $675,000 cash in April. Required: 1. Determine the amount of overhead applied to each job in April. Predetermined overhead rate Overhead applied 306 0.50 307 0.50 308 April Total 0.50 0.50 Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March) Direct labor used (in March). Overhead applied (March) Costs during April Direct labor used Overhead applied Direct materials used Status on April 30 Job 306 Job 307 Job 308 $ 27,000 23,000 11,500 $ 41,000 14,000 7,000 139,000 104,000 ? Finished (sold) 210,000 $ 115,000 151,000 101,000 ? ? Finished (unsold) In process Additional Information a. Raw Materials Inventory has a March 31 balance of $86,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $382,000. c. Actual overhead costs incurred in April are indirect materials, $59,000; indirect labor, $26,000; factory rent, $36,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $675,000 cash in April. 2. Determine the total cost assigned to each job as of April 30 (including the balances from March 31). Job 306 Job 307 March Direct materials $ 27,000 41,000 Direct labor 23,000 14,000 Overhead applied 11,500 7,000 Work in process, beginning April Direct materials Direct labor Overhead applied Costs added in April Job 308 April Total 139,000 104,000 210,000 151,000 115,000 464,000 101,000 356,000 Total costs Status on April 30 Finished (sold) Finished (unsold) In process April 30 cost included in: Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials used (in March) Direct labor used (in March) $ 27,000 23,000 Overhead applied (March) 11,500 $ 41,000 14,000 7,000 Costs during April Direct materials used 139,000 Direct labor used Overhead applied Status on April 30 104,000 ? Finished (sold) 210,000 $ 115,000 151,000 101,000 ? Finished (unsold) ? In process Additional Information a. Raw Materials Inventory has a March 31 balance of $86,000. b. Raw materials purchases in April are $540,000, and total factory payroll cost in April is $382,000. c. Actual overhead costs incurred in April are indirect materials, $59,000; indirect labor, $26,000; factory rent, $36,000; factory utilities, $20,000; and factory equipment depreciation, $56,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $675,000 cash in April. 4. Prepare a schedule of cost of goods manufactured for the month end April 30. MARCO COMPANY Schedule of Cost of Goods Manufactured For Month Ended April 30 Total manufacturing costs Total cost of work in process Cost of goods manufactured Listed below are costs of services provided by an airline company. Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time. Classify each cost as direct, indirect, selling, or general and administrative. Cost 1. Salesperson commissions 2. Office headquarters rent 3. Office equipment insurance 4. Travel agent salaries 5. Co-pilot wages 6. Advertising 7. Beverages served on plane 8. Accounting manager salary Classification Selected costs related to Apple's iPhone are listed below. Classify each cost as either direct materials, direct labor, factory overhead, selling expenses, or general and administrative expenses. 1. Salary of chief executive officer 2. Depreciation on office equipment 3. Advertising campaigns 4. Display screen 5. Battery component 6. Wages for retail store salesperson 7. Office building insurance used up 8. Uniforms provided for each factory worker