A local accounting firm employs 24 full-time professionals. The budgeted annual compensation per employee is $49,500. The average chargeable time is 400 hours per client annually. All professional labor costs are included in a single direct-cost category and are allocated to jobs on a per-hour basis.

Other costs are included in a single indirect-cost pool, allocated according to professional labor-hours. Budgeted indirect costs for the year are $780,000, and the firm expects to have 90 clients during the coming year.

What is the budgeted indirect-cost rate per hour? (Do not round intermediary calculations and round the final calculation to the nearest cent.)

 

QUESTION 2

Actual (rather than allocated) manufacturing overhead costs are first recorded in the:

Finished Goods Control account

Cost of Goods Sold account

Work-in-Process Control account

Manufacturing Overhead Control account

QUESTION 3

Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:

The actual material and labor costs charged to Job #432 were as follows:

Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.

For Department A, the manufacturing overhead allocation rate is:

 

QUESTION 4

Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000) is different from the actual amount incurred ($225,000).

Ending balances in the relevant accounts are:

Which account is credited to write off the difference between allocated and actual overhead using the proration approach?

Work-in Process Control

Manufacturing Overhead Allocated

Manufacturing Overhead Control

Finished Goods Control

QUESTION 5

For 2020, Franklin Manufacturing uses machine-hours as the only overhead cost-allocation base. The estimated manufacturing overhead costs are $210,000 and estimated machine hours are 20,000. The actual manufacturing overhead costs are $330,000 and actual machine hours are 30,000. What is the difference between the budgeted and the actual manufacturing overhead using job costing? (Round interim and the final answer to the nearest cent.)

 

QUESTION 6

For a given job the direct costs associated with the job are:

all fixed costs

actual overhead that has been applied to the job

raw materials that can be traced to the job in an economically feasible way

All sunk costs that can be traced to the job in an economically feasible way

QUESTION 7

In a costing system:

a cost object should be a product and not a department or a geographic territory

a cost-allocation base can be either financial or nonfinancial

cost tracing allocates indirect costs

cost allocation assigns direct costs

QUESTION 8

In a job-costing system, a manufacturing firm typically uses an indirect-cost rate to estimate the ________ allocated to a job.

total costs

direct labor

direct materials

manufacturing overhead costs

QUESTION 9

Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Case High School band jacket job.

What are the total manufacturing costs of this job?

 

QUESTION 10

River Falls Manufacturing uses a normal cost system and had the following data available for 2020:

The journal entry to record the materials placed into production would include a:

debit to Direct Materials Inventory for $157,000

credit to Direct Materials Inventory for $88,000

debit to WIP Inventory for $157,000

credit to WIP Inventory for $88,000

Answer rating: 100% (QA)

QUESTION 1 To calculate the budgeted indirectcost rate per hour we need the following information Budgeted indirect costs for the year 780000 Number of fulltime professionals 24 Average chargeable tim... View the full answer