> Ee Merge & Center S Clipboard Font Alignment C7 XV fix E 1 Activity-Based Costing and Activity-Based Management 2 Job costing with multiple direct-cost categories, single indirect-cost pool, law firm 3 Wharton Associates is a recently formed law partnership. Wharton Associates operates at capacity and uses a cost-based approach to pricing (billing) each job. Currently it uses a simple costing system with a single direct-cost category (professional labor-hours) and a single indirect-cost pool (general support). Indirect costs are allocated to cases on the basis of professional labor-hours per case. The job files for two of Wharton's clients, Steger Enterprises and Bluestone, 4 Inc., can be found on the "JOBFILES" tab. 5 Denise Peyton, the managing partner of Wharton Associates, asks her assistant to collect details on those costs included in the $500,000 indirect-cost pool that can be traced to each individual job (see "JOBFILES" tab for details). After analysis, Wharton is able to reclassify $300,000 of the $500,000 as direct costs. The direct 6 costs can be found on the "JOBFILES" tab. Peyton decides to calculate the costs of each job as if Wharton had used six direct- cost pools and a single indirect-cost pool. The single indirect-cost pool would have $200,000 of costs and would be allocated to each case using the professional 8 labor-hours base. INSTRUCTIONS JOBFILES ENTERANSWERS Calibri 12 = = Paste - ' ' Wrap Text BIU-BOAS Merge & Center General Clipboard $ - % Font Alignment 7 Number fix B E F Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Requirements 1 Calculate the revised indirect-cost allocation rate per professional labor-hour for Wharton Associates when total indirect costs are $200,000. 2 Compute the costs of the Steger Enterprises and Bluestone Inc. jobs if Wharton Associates had used its refined costing system with multiple direct- cost categories and one indirect-cost pool. Saving & Submitting Solution 1 Save file to desktop. a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS b. Save your solution in the folder you just created; add-solution-date to end of file name 2 Upload and submit your file to be graded. a. Navigate back to the activity window - screen where you downloaded the initial spreadsheet b. Click Choose button under step 3; locate the file you just saved and click Open Click Upload button under step 3 d. Click Submit button under step 4 C. INSTRUCTIONS JOBFILES ENTERANSWERS Paste BIU TaA. ili IM + Merge & C Clipboard Font L2 Alignment 28 X D E B **DATA SHEET DO NOT ENTER ANSWERS HERE** The job files for two of Wharton's clients, Steger Enterprises and Blueston Inc., show the following: Professional labor hours Steger Enterprises Bluestone Inc. 3,000 2,000 Professional labor costs at Wharton Associates are $160 an hour. Indirect costs are allocated to cases at $100 an hour. Total indirect costs in the most recent period were $500,000. Total cost of the jobs using the simple costing system are as e follows: 0 1 2 Direct professional labor 3 Indirect costs allocated 4 Total 5 16 17 Other Direct Costs Steger Enterprises Bluestone Inc. $480,000 $320,000 300,000 200,000 $780,000 $520,000 Steger Enterprises Bluestone Inc. INSTRUCTIONS UOBFILES ENTERANSWERS o Type here to search te File Holie Insert Draw Page Layout Formulas Data Rev X LG Calibri 12 2 Wrap Paste A M == - OA @ Merge 1 BIU Clipboard Font Alignment C8 X D A B C Total cost of the jobs using the simple costing system are as follows: 0 1 2 Direct professional labor 3 Indirect costs allocated 4 Total Steger Enterprises Bluestone Inc. $480,000 $320,000 300,000 200,000 $780,000 $520,000 5 5 Other Direct Costs 3. Research support labor Computer time Travel and allowances Telephone/faxes Photocopying Total Steger Enterprises Bluestone Inc. $36,000 $77,000 8,000 32,000 14,000 84,000 5,000 24,000 6,000 14,000 $69,000 $231,000 Autosane Game isome_hce1_P5-32_start - Read-Only- Home Insert Dia Page Layout Formulas Review View Help Power Pivot Calibri 12 ' ' General 16 Wrap text Merge Center - Paste BTU $ - % 48-58 Con Form Chipboard Font Alignment Number E11 A 4 5 1. Caleulate the revised indirect-cost allocation rate per professional labor-hour for Wharton 1 Associates when total indirect costs are $200,000 (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from 2 the instruction tab you will be marked wrong) 3 per professional labor hour 5 2. Compute the costs of the Steger Enterprises and Bluestone Inc. jobs if Wharton Associates had used its refined costing system with multiple direct cost categories and one indirect-cost pool. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from 7 the Instruction tab you will be marked wrong.) 8 Steger Enterprises Bluestone Inc. 10 Direct costs: 11 Direct professional labor 12 Research support labor 13 Computer time 14 Travel and allowances 15 Telephone/faxes 16 Photocopying 17 Total direct costs INSTRUCTIONS JOBFILES ENTERANSWERS 9 13 Type here to search O AutoSave OM Seard Gamayizome_hca16_P5-32_start - Read-Only - Page Layout Formulas Data Review View File Home Insert Draw Powel Help Calibri 12 General ' -- A - 2 Wrap Text Merge & Center - Paste BI U $ - %) Clipboard Font Alignment Number E11 X B C D 8 Steger Enterprises Bluestone Inc. 10 Direct costs: 11 Direct professional labor 12 Research support labor 13 Computer time 4 Travel and allowances 5 Telephone/faxes 6 Photocopying 7 Total direct costs 8 Indirect costs allocated 9 Total costs of job 0 1 -2 3 4 5 6 7 8 INSTRUCTIONS JOBFILES ENTERANSWERS Type here to search o