35) A machine shop has direct materials cost of $1,800,000 direct labour of $4,200,000 (direct labour rate is $50 per hour) and budgeted indirect manufacturing costs of $850,000, Management believes that Indirect manufacturing costs increase with direct labour hours. What is the budgeted indirect manufacturing cost rate? A) $2.12 B) $2.33 C) $4.94 D) $10.12 E) $17.00 37) A local financial consulting firm employs 30 full-time employees. The budgeted compensation per employee is $50,000. The annual maximum chargeable time to each client is 1,000 hours. Clients always receive their full amount of time. All labour costs are included in a single direct-cost category and are traced to jobs on a per-hour basis. Any other costs are included in a single indirect-cost pool, allocated according to professional labour- hours. Budgeted indirect costs for the year are $1,050,000, and the firm expects to have 60 clients during the coming year. What is the budgeted indirect-cost rate per hour? A) $1,050.00 per hour B) $50.00 per hour C) $35.00 per hour D) $17.50 per hour E) $10.00 per hour 38) A local financial consulting firm employs 30 full-time staff. The budgeted compensation per employee is $50,000, for 2,000 hours. All direct labour costs are charged to clients. Any other costs are included in a single indirect-cost pool, allocated according to labour-hours. Actual indirect costs were $750,000. Budgeted indirect costs for the year are $525,000 and the firm expects to have 60 clients during the coming year. What is the total cost of a job which took 27 hours, using normal costing? A) $911.25 B) $1,012.50 C) $27,337.50 D) $30,375.00 E) $50,000.00 39) A company employs 25 full-time staff. The company spent $75,000 in advertising in the year (this amount is a period cost with a constant amount spent each year). Budgeted indirect manufacturing costs total $250,000 and the direct labour rate is $15 per hour. Budgeted labour hours were 500,000, and actual labour hours were 524,000. Actual indirect overhead was $274,600. What are the actual and normal indirect-cost rates respectively? A) $0.52 and $0.50 B) $0.50 and $0.52 C) $0.55 and $0.48 D) $0.67 and $0.65 E) $0.65 and $0.67 40) Costing systems that are used for costing like or similar units of products in mass production are called A) inventory-costing systems. B) job-costing systems. C) process-costing systems. D) weighted-average costing systems. E) bulk costing systems.