Gunderson Consulting provides a wide range of consulting services for major league Baseball teams. They are considering different methods of charging costs to individual jobs in a job order costing system. The majority of the billable services are between the world series and beginning of spring training. The support workers complete research and analysis evenly throughout the year except they all get the month of December off. For the last year they incurred total direct costs of $400,000 and 10,000 direct billable hours. Before the year began they had not expected the pandemic, so they had budgeted $1,000,000 direct costs and budgeted 20,000 billable hours. Overhead had been budgeted $500,000 and incurred $350,000. They allocate the overhead based on billable hours. Calculate the cost per billable hour for direct costs and indirect costs under: Actual costing Normal costing Variation of normal costing Standard costing Determine the amount of costs charged to a job that incurred 50 hours, but had budgeted 60 hours under: Actual costing Normal costing Variation of normal costing Standard costing Which of the different costing methods would you recommend? State your answer in paragraph form (not bullets). Explain your answer.

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ANS WER 1 Using actual costing the cost per bill able hour for direct costs would be 400 000 10 000 ... View the full answer