Wright Associates is a recently formed law partnership. Claire Haberman, the managing partner of Wright Associates,...
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Wright Associates is a recently formed law partnership. Claire Haberman, the managing partner of Wright Associates, has just finished a tense phone call with Martin Jabar, president of Jabar Enterprises. Martin strongly complained about the price Wright charged for some legal work done for his company. (Click the icon to view additional information.) Read the requirements. ... More info Requirement 1. Why is it important for Wright Associates to understand the costs associated with individual jobs? A. Operating at or above capacity for the company lowers overall costs to individual jobs. Haberman also received a phone call from its only other client, Centura, Inc., which was very pleased with both the quality of the work and the price charged on its most recent job. O B. Overstaffing any job would be detrimental to the company's bottom line. OC. Pricing decisions are heavily influenced by reported cost numbers. Wright Associates operates at capacity and uses a cost-based approach to pricing (billing) each job. Currently it uses a simple costing system with a single direct-cost category (professional labor-hours) and a single indirect-cost pool (general support). Indirect costs are allocated to cases on the basis of professional labor-hours per case. The job files show the following: O D. All of the above. Requirements Jabar Enterprises Centura Inc. Professional labor 2,700 hours 2,300 hours 1. Why is it important for Wright Associates to understand the costs associated with individual jobs? 2. Compute the costs of the Jabar Enterprises and Centura Inc. jobs using Wright's simple costing system. Professional labor costs at Wright Associates are $250 an hour. Indirect costs are allocated to cases at $115 an hour. Total indirect costs in the most recent period were $575,000. Wright Associates is a recently formed law partnership. Claire Haberman, the managing partner of Wright Associates, has just finished a tense phone call with Martin Jabar, president of Jabar Enterprises. Martin strongly complained about the price Wright charged for some legal work done for his company. (Click the icon to view additional information.) Read the requirements. ... More info Requirement 1. Why is it important for Wright Associates to understand the costs associated with individual jobs? A. Operating at or above capacity for the company lowers overall costs to individual jobs. Haberman also received a phone call from its only other client, Centura, Inc., which was very pleased with both the quality of the work and the price charged on its most recent job. O B. Overstaffing any job would be detrimental to the company's bottom line. OC. Pricing decisions are heavily influenced by reported cost numbers. Wright Associates operates at capacity and uses a cost-based approach to pricing (billing) each job. Currently it uses a simple costing system with a single direct-cost category (professional labor-hours) and a single indirect-cost pool (general support). Indirect costs are allocated to cases on the basis of professional labor-hours per case. The job files show the following: O D. All of the above. Requirements Jabar Enterprises Centura Inc. Professional labor 2,700 hours 2,300 hours 1. Why is it important for Wright Associates to understand the costs associated with individual jobs? 2. Compute the costs of the Jabar Enterprises and Centura Inc. jobs using Wright's simple costing system. Professional labor costs at Wright Associates are $250 an hour. Indirect costs are allocated to cases at $115 an hour. Total indirect costs in the most recent period were $575,000.
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
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