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Cardinal Design is an interior design firm. The firm uses a job cost system in which each client is a different?"job." Cardinal Design traces direct?labor, licensing?costs, and travel costs directly to each job?(client). It allocates indirect costs to jobs based on a predetermined indirect cost allocation rate computed as a percentage of direct labor costs.
Quiz: Chapter 3 Quiz Submit Quiz This Question: 2 pts 5 of 12 (9 complete) This Quiz: 15 pts possible i Data Table X Cardinal Design is an interior design firm. The firm uses a job cost system in which each client is a different At the beginning of the current year, 'job." Cardinal Design traces direct labor, licensing costs, and travel costs directly to each job (client). It allocates indirect costs to jobs based on a predetermined indirect cost allocation rate computed as a (Click the icon to view the prepa percentage of direct labor costs. Later that same year in November, here: Direct labor hours (professional) . . .. . 8,000 hours (Click the icon to view the record Direct labor costs (professional) . .. .. $ 1,200,000 Read the requirements. Support staff salaries . . . . . $ 140,000 Computer lease payments . . . . . . . . . . . $ 47,000 Requirement 1. Compute Cardinal Design's predetermined indirect cost allocation rate for the current year. Office supplies. $ 27,000 Identify the formula, then compute the rate. (Enter the result as a whole number.) Office rent. . . . . . . . . . . . . . .. ..... $ 62,000 Predetermined indirect cost allocation rate Print Done % Requirement 2. Compute the total cost of each of the two jobs listed. i Data Table X First enter in the direct costs for each job, then enter in the indirect costs and total cost for the jobs. (Complete all input fields. For accour percentage amounts as a whole number. Round your answers to the nearest whole dollar.) Cardinal Design Fancy Food TalkNow.com Estimated Cost of Fancy Food and TalkNow.com Jobs Direct labor hours . . . . . 780 hours 50 hours 2,800 $ Fancy Food Talk Now com Licensing costs . . . . . . . 550 Travel costs . . . . . . . . . . 5,000 $ 0 Choose from any list or enter any number in the input fields and then continue to the next question. Print Donei} Cardinal Design is an interior design rm. The rm uses a job cost system in which each client is a different 1 At the beginning of the current year, managing partner Sarah Munro prepared the following budget: "job." Cardinal Design traces direct labor, licensing costs, and travel costs directly to each job (client). It (Click the icon to view the prepared budget.) allocates indirect costs to 'obs based on a redetermined indirect cost allocation rate com uted as a ' percentage of direct laborlcosts. p p i :2: that same year in November, Cardinal Design served several clients. Records for two clients appear a (Click the icon to view the records for two clients.) Read the Muirements. Fancy Food TalkNow.com Direct Costs: hours x hours x Total Direct Costs Indirect Costs: % x % x Total Cost Choose from any list or enter any number in the input fields and then continue to the next question. Cardinal Design is an interior design rm. The rm uses ajob cost system in which each client is a different \"job." Cardinal Design traces direct labor, licensing costs, and travel costs directly to each job (client). It allocates indirect costs to jobs based on a predetermined indirect cost allocation rate computed as a percentage of direct labor costs Later that same year in November, Cardinal Design served several clients. Records for two clients appear ' here: At the beginning of the current year, managing partner Sarah Munro prepared the following budget: Click the icon to view the prepared budget.) a (Click the icon to view the records for two clients.) Read the muirements. Indirect Costs: Total Cost Requirement 3. If Cardinal Design wants to earn prots equal to 20% of sales revenue, how much (what total fee) should the company charge each of these two clients? Identify the formula then determine the amount Cardinal Design should charge these clients. (Round your answers to the nearest whole dollar.) + = Fee charged Fancy Food + % = TalkNow.com + % = Requirement 4. Why does Cardinal Design assign costs to jobs? Cardinal Design assigns costs to jobs to help the company E that cover all costs and contribute to prot. Assigning costs to 7 also can help Cardinal Design control costs. Choose from any list or enter any number in the input fields and then continue to the next question. l4 Root Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Root Company reports the following cost data for the past year: a (Click the icon to view the cost data.) Read the Equirements. Requirement 1. Compute the predetermined manufacturing overhead rate. Enter the formula for predetermined manufacturing overhead rate, then compute the rate. + = Predetennined overhead rate + = per machine hour Requirement 2. Calculate the allocated manufacturing overhead for the past year. Manufacturing x overhead allocated x | lI Requirement 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? First calculate the preliminary manufacturing overhead balance using the T-account. Manufacturing Overhead Choose from any list or enter any number in the input fields and then continue to the next question. a Root Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Root Company reports the following cost data for the past year: (Click the icon to view the cost data.) Read the requirements. Manufacturing Overhead Close the under- or overallocated overhead to Cost of Goods Sold by journalizing the entry. (Record debits first, then credits. Exclude explanations from any journal entries. Journal Entry Date Accounts Debit Credit DesirAment A HOW can mananare IIce accounting information to haln central manufacturing awarhead anote? Choose from any list or enter any number in the input fields and then continue to the next question. ?Root Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Root Company reports the following cost data for the past year: a (Click the icon to view the cost data.) Read the muirements. Close the under- or overallocated overhead to Cost of Goods Sold by joumalizing the entry. (Record debits rst, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accou nts Debit Credit Requirement 4. How can managers use accounting information to help control manufacturing overhead costs? To help control manufacturing overhead, managers compare the actual line item between actual and budgeted amounts to identify the reasons why actual costs amounts for 7 Choose from any list or enter any number in the input fields and then continue to the next question. 7. with the budgeted amounts. Managers will also investigate only W differences Quiz: Chapt This Question: 2 pts 3 Quiz 4 120f12(9 complete)v } Submit Quiz This Quiz: 15 pts possible 9 Geo TIre manufactures tires for all -terrain vehicles. Geo uses job costing and has a perpetual inventory system. On April 22, Geo received an order for 120 TX tires 'from ATV Corporation at a price of $100 each. The job. assigned number 298, was promised for May 10. After purchasing the materials, Geo began production on April 30 and incurred the follo ' E (Click the Icon to view the costs.) Geo allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs ($460,000) and expected direct | o Reqwrements on May 5. Read the muirements. Requirement 1. Prepare a job cost record for Job 298. Calculate the predetermined overhead rate, then apply manufacturing overhead to the job. Begin by identifying the formula and .1 Predetennined overhead rate per hour Complete the job cost record in order of direct materials, direct labor, and allocated manufacturing overhead. Then prepare the o in the correct row according to date. If an input eld is not used in the table, leave the input eld empty; do not enter a zero.) Job Cost Record Job No. 298 Customer Name ATV Corporation Job Description 120 TX tires Date Promised 510 Date Started 4-30 lDate Completed 53 Direct Materials Direct Labor | Manufacturing Overhead Allocated Choose from any list or enter any number in the input fields and then continue to the next question. i 1. Prepare a job cost record for Job 298. 2. Calculate the total prot and the per-unit prot for Job 298. Date Record No. Description 4/30 1896 12 hours at $18 5/3 1904 30 hours at $20 Materials Date Requisition No. Description 4/30 437 60 lbs. rubber at $14 5/2 439 40 meters polyester fabric at $12 5/3 501 100 meters steel cord at $10 Amount $ 840 $ 480 $ 1 ,000 ' Print ' Done ' Geo TIre manufactures tires for all-terrain vehicles. Geo uses job costing and has a perpetual inventory system. On April 22, Geo received an order for 120 TX tires from ATV Corporation at a price of $100 each. The job, assigned number 298, was promised for May 10. After purchasing the materials, Geo began production on April 30 and incurred the following direct labor and direct materials costs in completing the order: (Click the icon to view the costs.) Geo allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs ($460,000) and expected direct labor hours (23,000). Job 298 was completed on May 3 and shipped to ATV on May 5. Read the muirements. 7 Direct Materials Direct Labor Manufacturing Overhead Allocated Labor Time Requisition Record Date Number Amount Number Amount Date Rate Amount 20XX _ |_l |_l per direct labor hr. Overall Cost Summary Direct Materials Direct Labor Manufacturing Overhead Allocated Totals Total Job Cost Choose from any list or enter any number in the input fields and then continue to the next question. Q Geo Tire manufactures tires for all-terrain vehicles. Geo uses job costing and has a perpetual inventory system. On April 22, Geo received an order for 120 TX tires from ATV Corporation at a price of $100 each. The job assigned number 298, was promised for May 10. After purchasing the materials, Geo began production on April 30 and incurred the following direct labor and direct materials costs in completing the order: (Click the icon to view the costs.) Geo allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs ($460,000) and expected direct labor hours (23,000). Job 298 was completed on May 3 and shipped to ATV on May 5. Read the @uirements. l l l [ m'ecnvrarenars Direct Labor Manufacturing Overhead Allocated Totals Total Job Cost Requirement 2. Calculate the total prot and the per-unit prot for Job 298. (Round your answer to two decimal places.) Job 298 Sales Less: Cost of job Total prot on job Number of tires Per-unit prot Choose from any list or enter any number in the input fields and then continue to the next
