Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Al'Shen contact mark up for prom nejob. Direct laxit hours thaton beste forstin December 2019, Al Sheril budgets 2020 indirect costs to be $10,000,000 and

image text in transcribed
Al'Shen contact mark up for prom nejob. Direct laxit hours thaton beste forstin December 2019, Al Sheril budgets 2020 indirect costs to be $10,000,000 and 2020 direct labor hours to be 175,000. At the end of 2020, Al Sheril was comparing the costs of several jobs that were started and completed during 2020: Al Jurf Pearl RAK Appex Construction Period 1/2 - 18/7/2020 4/3-8/10/2020 Direct Material cost $480,000 $520,000 Direct Labor Cost 68,000 72,000 Direct labor Hours 1,020 1,220 The 2020 actual indirect costs were $12,614,000 and the actual direct labor hours were 190,000. Required: (A) Compute the budgeted and actual indirect cost rates and provide an explanation of the variations (if any). (B) What are the job costs of Al Jurf Pearl and RAK Appex under? i. normal costing, and ii. Actual costing. (C) What is the suitable pricing of both jobs under actual costing, provided that the mark-up was 18%? Al'Shen contact mark up for prom nejob. Direct laxit hours thaton beste forstin December 2019, Al Sheril budgets 2020 indirect costs to be $10,000,000 and 2020 direct labor hours to be 175,000. At the end of 2020, Al Sheril was comparing the costs of several jobs that were started and completed during 2020: Al Jurf Pearl RAK Appex Construction Period 1/2 - 18/7/2020 4/3-8/10/2020 Direct Material cost $480,000 $520,000 Direct Labor Cost 68,000 72,000 Direct labor Hours 1,020 1,220 The 2020 actual indirect costs were $12,614,000 and the actual direct labor hours were 190,000. Required: (A) Compute the budgeted and actual indirect cost rates and provide an explanation of the variations (if any). (B) What are the job costs of Al Jurf Pearl and RAK Appex under? i. normal costing, and ii. Actual costing. (C) What is the suitable pricing of both jobs under actual costing, provided that the mark-up was 18%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Philosophy And Technique

Authors: John William Cook

1st Edition

039520660X, 978-0395206607

More Books

Students also viewed these Accounting questions

Question

Vector R has length 18.0 cm at 305.0. Find its x- and y-components.

Answered: 1 week ago