Access the "Busy Day Costs Worksheet" and click on the tab called 'Cost Classification'.

1. In the column "Classification Q5c" indicate whether the expense is a:

• Fixed Cost
• Input Cost - Labour
• Input Cost - Materials
• Input Cost - Overhead
• Direct Cost
• Indirect Cost
• Variable Cost
• Semi-Variable Cost
• Prime Cost
• Conversion Cost

Cost	Amount	Classification Q5c
Rent of Office	$ 2,500.00
Contract Management Consultant	$ 1,500.00
Electricity	$ 300.00
Gas	$ 250.00
Internet	$ 400.00
Admin Staff Wages	$ 2,500.00
Telephone Monthly Plan of $350 flat rate	$ 350.00
Accountants Wages: Job 01	$ 1,750.00
Accountants Wages: Job 02	$ 1,500.00
Stationary Expense	$ 750.00
Petty Cash Expense	$ 120.00
Depreciation of Office Furniture	$ 250.00
Depreciation of Computer Equipment	$ 250.00

Your manager has brought it to your attention that some classifications of costs have been incorrect in prior reporting periods and has asked you to review the following excerpt from the "Organisational Policies and Procedures Manual for Classification and Coding of Assets" and check your cost coding for accuracy against this policy.

Excerpt:

"Depreciation of Office Furniture and Computer is to be expensed to Job 01 and Job 02, as the assets were purchased for staff to complete these jobs."

"All contract management consultant expenses are to be allocated to Job 02."

"Admin Staff wages are 50% fixed costs and a 50% variable expense of Job 02."

Review the above information and utilising the Busy Day Costs Worksheet from the previous activity, click on the tab called 'Cost Classification'.

Check that the worksheet is accurate and complies with the management information above and organisational practices.

1. Fill in the "Classification Q5d" column of your Busy Day Costs Worksheet making any necessary changes that might have come to light after reading the excerpt from the "Organisational Policies and Procedures Manual for Classification and Coding of Assets".

Cost	Amount	Classification Q5c	Classification Q5d
Rent of Office	$ 2,500.00
Contract Management Consultant	$ 1,500.00
Electricity	$ 300.00
Gas	$ 250.00
Internet	$ 400.00
Admin Staff Wages	$ 2,500.00
Telephone Monthly Plan of $350 flat rate	$ 350.00
Accountants Wages: Job 01	$ 1,750.00
Accountants Wages: Job 02	$ 1,500.00
Stationary Expense	$ 750.00
Petty Cash Expense	$ 120.00
Depreciation of Office Furniture	$ 250.00
Depreciation of Computer Equipment	$ 250.00

Save the worksheet when completed: you will be using it again in the next activity.

Resources required for this assessment:

• Busy Day Costs Worksheet from previous activity

You are now using the new system for costing that you established in the previous activity. You have noticed that the costs for January 2023 are now incorrect and need to be reconciled. You decide to review the "Organisational Policies and Procedures Manual for Classification and Coding of Assets" excerpt from Q5d and the following excerpt from the same policy that establishes how to apply the allocation of overhead costs to jobs.

Excerpt:

The following costs are to be allocated 50% to Job 01 and 50% to Job 02:

Rent Electricity Gas Internet Admin

Telephone Stationary Petty Cash Depreciation of Office Equipment Depreciation of Computer Equipment

Review the above information and utilising the Busy Day Costs Worksheet from the previous activity, click on the tab called 'Reconciliation of Costs'.

You have just reviewed the Costs Allocated to Job01 table and identified that you are out $1,485.00 from the control account and have noticed that your cost allocation to Job01 should be $5,585 not $7,070.

1. Rework the costs in the Reconciliation of Job01 table and reconcile them to match the figures given above.

You should ensure that the reports are now accurate, include all amounts and comply with management information requirements and organisational practices.

Costs Allocated to Job01
Date	Costs	Amount
1/01/2023	Rent	$ 1,250.00
7/01/2023	Contract Management Consultant	$ 1,500.00
8/01/2023	Electricity	$ 150.00
9/01/2023	Gas	$ 125.00
15/01/2023	Internet	$ 200.00
15/01/2023	Admin Staff Wages	$ 1,250.00
18/01/2023	Telephone	$ 350.00
20/01/2023	Accountants Wages Job 01	$ 1,500.00
23/01/2023	Stationary Expense	$ 375.00
24/01/2023	Petty Cash	$ 120.00
31/01/2023	Depreciation of Office Furniture	$ 125.00
31/01/2023	Depreciation of Computer Equipment	$ 125.00
Total		$ 7,070.00
Reconciliation of Job01
Date	Costs	Amount
1/01/2023	Rent
7/01/2023	Contract Management Consultant
8/01/2023	Electricity
9/01/2023	Gas
15/01/2023	Internet
15/01/2023	Admin Staff Wages
18/01/2023	Telephone
20/01/2023	Accountants Wages Job 01
23/01/2023	Stationary Expense
24/01/2023	Petty Cash
31/01/2023	Depreciation of Office Furniture
31/01/2023	Depreciation of Computer Equipment
Total		$ -