Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 62,500 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $437,500 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's actual overhead cost for the year was $458,000 and its actual total direct labor was 67,150 hours. Required: 1. Compute the predetermined overhead rate. 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job: Direct materials Direct labor cost Direct labor-hours worked $ 42,000 $ 26,400 250 Compute the total job cost for the Xavier Company engagement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the total job cost for the Xavier Company engagement. (Round your intermediate calculations to 2 decimal places.) Direct materials Direct labor Overhead applied Total manufacturing cost < Required 1 Required 2 > Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 62,500 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $437,500 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's actual overhead cost for the year was $458,000 and its actual total direct labor was 67,150 hours. Required: 1. Compute the predetermined overhead rate. 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job: Direct materials Direct labor cost Direct labor-hours worked $ 42,000 $ 26,400 250 Compute the total job cost for the Xavier Company engagement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the total job cost for the Xavier Company engagement. (Round your intermediate calculations to 2 decimal places.) Direct materials Direct labor Overhead applied Total manufacturing cost < Required 1 Required 2 >
Expert Answer:
Answer rating: 100% (QA)
Required 1 Compute the predetermined overhead rate To compute the predetermined overhead rate we nee... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Tech Solutions is a consulting firm that uses a job - order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm s...
-
j) Assume that one of these portfolio's is the Market Portfolio and all portfolios, except Portfolio G, are fairly priced according to the CAPM. Derive the Treynor Measure for these fairly priced...
-
In an ideal Brayton cycle with regeneration, argon gas is compressed from 100 kPa and 258C to 400 kPa, and then heated to 12008C before entering the turbine. The highest temperature that argon can be...
-
The range of a set of data is defined as the absolute difference between the least value and the greatest value in the set. Four positive integers have an average (arithmetic mean) of 7.5. a. What is...
-
Table B.23 contains player efficiency ratings (PER) from the 2016-17 and 2017-18 NBA combine that evaluates 60 rookies hoping to be drafted by NBA teams. PER is a measure of a player's per-minute...
-
Delphi Company has developed a new product that will be marketed for the first time during the next fiscal year. Although the marketing department estimates that $35,000 units could be sold at $36...
-
Cullumber Ltd. is in the business of manufacturing cabinets, computer stands, and countertops. Most of its jobs are contracts for home builders. The following information is available for the month...
-
A 25 lb block have a velocity of 10 ft/s when at the midways between A and B. It strikes spring at B and rebound back. Calculate the total distance travelled from its position shown in Figure . Take...
-
A bank loan granted considers the interest rate of 48% annually, compounded quarterly. Calculate the final value to be covered if the amount borrowed is $71,000 over 4 years.?
-
A solid - gold jewerly box was found in a the underwater palace of Cleopatra just off the shore of Alexandria. The length of the rectangular box is 3 5 centimeters less than the triple the width. The...
-
Find the 4th term of the sequences= =(n-2) (3)"-1 Blank 1
-
If you were told that a Multiple R from a regression analysis was .632 and the R Square is .16, what would that tell you about the data? Please be as specific and details as possible.
-
The weight (in pounds) of a certain population of men is normally distributed. A random sample of 16 men taken from the population yields a sample mean weight of 168 with a sample variance of 225....
-
Oregon Manufacturing had the following data for the past three months. January February March Sales in units 3000 3,750 4,500 Operating expenses $272,000 $296,000 $320,000 1. Using the high-low...
-
Calculate the Lagrange polynomial P 2 (x) for the values (1.00) = 1.0000, (1.02) = 0.9888, (1.04) = 0.9784 of the gamma function [(24) in App. A3.1] and from it approximations of (1.01) and (1.03).
-
A construction engineer has to inspect 5 construction sites in a 2-day inspection schedule. He may or may not be able to visit these sites in two days. He will not visit any site more than once. (a)...
-
An explosion in an LNG storage tank in the process of being repaired could have occurred as the result of static electricity, malfunctioning electrical equipment, an open flame in contact with the...
-
What conditions for the binomial distribution, if any, fail to hold in the following situations? (a) For each of a company's eight production facilities, record whether or not there was an accident...
Study smarter with the SolutionInn App