Exercise 5.23 Consider the following budgeted data for the client case of Sage's accounting firm. The client wants a fixed-price quotation. Direct professional labour Direct support labour Fringe benefits for direct labour Photocopying Telephone calls Computer lines $ 20,900 9,000 14,100 1,900 2,200 5,800 Overhead is allocated at the rate of 100% of direct labour cost. Prepare schedule of the budgeted total costs for the client. Show subtotals for total direct labour costs and total costs as a basis for mark-up. Allocated overhead Other direct costs Budgeted costs Direct labour costs Professional labour Total Support labour Assume that the partners' policy is to quote a fixed fee at 10% above the total costs. What fee would be quoted? Quoted fee Exercise 5.24 Ayayai Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Ayayai estimated that the total overhead costs would be $66,600 and that the total labour hours would be 2,220. At the end of the year, Ayayai obtained the actual overhead costs from the ledger and found that the shop had incurred $60,844 and had worked 2,173 labour hours. Compute the predetermined (budgeted) overhead rate. Overhead Rate s SHOW LIST OF ACCOUNTS Compute the overhead amount that was applied for the year. Was overhead underapplied or overapplied? Applied Overhead Amount SHOW LIST OF ACCOUNTS Prepare the journal entry to close the overhead account. Assume that the underapplied and overapplied overhead was not material. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry Required for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS A customer brings her car to be fixed. She wants an estimate before she decides to have her car fixed. Ayayai estimates that the parts would cost $268, labour costs $44/hour for 3.00 hours. What is the cost this job? Total Cost A customer brings her car to be fixed. She wants an estimate before she decides to have her car fixed. Ayayai estimates that the parts would cost $268, labour costs $44/hour for 3.00 hours. What is the cost of this job? Total Cost SHOW LIST OF ACCOUNTS To provide a quote to a customer, Ayayai adds a 44% mark up on the full costs. What is the quote for the job in (D)? (Round answer to 0 decimal places, e.g. 5,275.) Quote $ SHOW LIST OF ACCOUNTS