=+5-20 KKK Job costing, accounting firm OBJECTIVE 6 Poole and Partners is an accounting firm specialising in
Question:
=+5-20 KKK Job costing, accounting firm OBJECTIVE 6 Poole and Partners is an accounting firm specialising in auditing. Budgeted revenues for 2014 were 13000000. The main costs incurred by Poole and Partners are labour, both direct and indirect. These costs include significant year-end bonuses based on the overall success of the firm. The budgeted direct labour costs (which include salaries and anticipated bonuses) are $3450000.
Budgeted indirect costs are $5000000:
Revenues $13 000 000 Total costs Direct labour costs $3 450 000 Indirect costs 5 000 000 8 450 000 Operating profit $4 550 000 Poole and Partners has a single direct cost category and a single indirect cost pool. Indirect costs are allocated to jobs on the basis of direct labour costs.
Required 1 Prepare an overview diagram of the job-costing system. Calculate the 2014 budgeted indirect cost rate for Poole and Partners.
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan