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Posted on Sep 14, 2024

10. U, LU. U, UIIII , U y , easy, MIH: 1, AALSU: Reflective thinking, AICPA BB: Marketing/Client Focus, AICPA FN: Decision Modeling, AICPA PC:

10. U, LU. U, UIIII , U y , easy, MIH: 1, AALSU: Reflective thinking, AICPA BB: Marketing/Client Focus, AICPA FN: Decision Modeling, AICPA PC: Project Management, IMA: Business Economics Use the following information for questions 7476. Carlos Consulting Inc. provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant. Consultants' wages $90,000 Fringe benefits $22,500 Related overhead $17,500 Supply clerk's wages $18,000 Fringe benefits $4,000 Related overhead $20,000 Profit margin per hour $20 Profit margin on materials 15% Total estimated consulting hours 5,000 Total estimated material costs $168,000 74. The labor rate per hour is a. $42.50. b. $26.00. c. $41.50. d. $46.00 Ans: d, LO: 3, Bloom: AP, Difficulty: Medium. Min: 2, AACSB: Analytic, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC: Problem Solving/Decision Making, IMA: Business Economics The material loading charge is a. 15% b. 25% c. 40% d. 55%. 75. Ans: C, LO 3, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC: Problem Solving/Decision Making, IMA: Business Economics 76. A consulting job takes 20 hours of consulting time and $180 of materials. The client's bill would be a. $1,172 b. $772. c. $952. d. $1,100. Ansa, LO:3, Bloom: AP, Diculty: Medium, Mini 2. AACSB: Analytic, AICPA BB: Marketing Client Focus, AICPA FN: Measurement, AICPA PC: Problem Solving Decision Making, IMA: Business Economics Use the following information for questions 77-78. Lonely Guy Repair Service recently performed repair services for a customer that totaled $400. Somehow the bill was lost and the company accountant was trying to recreate the bill from memory. This is what was remembered: Total bill $600 Labor profit margin $10 Materials profit margin 20% Total labor charges $390 Cost of materials used $120 Total hourly cost $22.50 77. What was the material loading charge? a. 37.5% b. 43.8% c. 61.3% d. 75% Ans: d, LO:3, Bloom: AP, Diffoly: Medium, Min: 2, AACSB: Analytic, AICPA BB: Marketing Client Focus, AICPA FN: Measurement AICPA PC: Problem Solving/Decision Making. IMA Business Lconomics 78. How many hours were billed on the job? a. 19.5 b. 18.5 c. 17.3 d. 12.0 Ans: d. LO:3Bloom: AP, D ully, Medium, Mini 2 AACSB: Analyi, AICPA BB: Marketing Client Focus, AICPA FN: Measurement, AICPA PC Problem Solving/Decision Making MA Busius Economics 79. Lawrence Legal Services recently billed a customer $690. Labor hours were 6 and the cost of the materials used was $150. If the company's hourly labor rate was $75, what material loading charge was used? a. 30% b. 50% C. 60% d. 100% Ans: , LO: 3, Bloom: AP. Dmculty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC: Problem Solving/Decision Making. MA: Business Economics 80. Pricing 8-17 Dudly Drafting Services uses a 45% material loading charge and a labor rate of $20 per hour. How much will be charged on a job that requires 3.5 hours of work and $40 of materials? a. $128 b. $110 c. $88 d. $133 Ans: , LO3. Bloom: AP, Dimculty Medium, Min 2, AACSB Analytid, AICPA BB. Markenget Focus, AICPA FN: Measurement, AICPA PC: Problem Solving Decision Making, IMA: Business Economics The time component or limond material nacin Use e unowing information for questions 84-86. Jaycee Auto Repair has the following budgeted costs for the next year Time Charges Material Charges Shop employees' wages and benefits $120,000 Parts manager's salary and benefits 45,000 Office employee's salary and benefits 30,000 15,000 Other overhead 15,000 40,000 Invoice cost of parts and materials 400.000 Total budgeted costs $165.000 $500.000 84. The labor rate to be used next year assuming 7,500 hours of repair time and a profit margin of $25 per labor hour is a. $22. b. $41. C. $43. d. $47. Ans: d, LO:3, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Marketing/Client Focus, AICPA FN: Reporting, AICPA PC: Problem wounty, Seventh Edition 85. The material loading charge to be used next year assuming a 40% markup on material cost is a. 20% b. 40% C. 65%. d. 80% Ans: G, LO: 3, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC Problem Solving/Decision Making. IMA: Business Economics Jaycee estimates that the repairs to a Cadillac Escalade damaged in an accident will take 45 hours of labor and $3,500 in parts and materials. The total cost of the repairs is a. $5,890. b. $7,890. C. $5,775. d. $7,015. 86