{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T00:07:13-04:00", "answer_date": "2024-05-27 00:07:13", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1767259", "url": "\/study-help\/questions\/i-problem-set-5-advising-services-home-association-asha-is-1767259", "question_creation_date_js": "2024-05-27T00:07:13-04:00", "question_creation_date": "May 27, 2024 12:07 AM", "meta_title": "[Solved] I. Problem Set 5 Advising Services Home A | SolutionInn", "meta_description": "Answer of - I. Problem Set 5 Advising Services Home Association (ASHA) is a consulting firm which offers professional guidance, ad | SolutionInn", "meta_keywords": "problem,set,5,advising,services,home,association,asha,consulting,firm,offers,professional", "question_title_h1": " I. Problem Set 5 Advising Services Home Association (ASHA) is a consulting firm which offers professional guidance, advice, and solutions to different home-based businesses", "question_title": " I. Problem Set 5 Advising Services Home Association (ASHA) is a", "question_title_for_js_snippet": "I Problem Set 5 Advising Services Home Association (ASHA) is a consulting firm which offers professional guidance, advice, and solutions to different home based businesses that experience any problem on which they might need help ASHA provides consulting services in the 10 largest markets in the US and uses a job order costing system to accumulate the cost of client projects Traceable costs are charged directly to individual clients in contrast, other costs incurred by ASHA, but not identifiable with specific clients, are charged to jobs by using a predetermined overhead application rate Clients are billed for directly chargeable costs, overhead, and a markup Miley Danke, ASHA's controller, anticipates the following costs for 20X7 Percentage of Cost Directly Cost Professional staff salaries $3,750,000 Administrative support staff 450,000 Photocopying 75,000 Travel 375,000 Other operating costs 150,000 Total $4,800,000 Traceable to Clients 80 60 90 90 50 The firm's partners are planning to add a percentage markup on total cost to achieve that figure for 20X7 and they want to make a $960,000 profit for the firm On February 6, 20X7, ASHA completed work on a new project for Innovation Products Inc Costs incurred professional staff salaries, $61,500 administrative support staff, $3,900 photocopying, $750 travel, $6,750 and other operating costs, $2,100 Required 1 Determine ASHA's total traceable costs for 20X7 and the firm's total anticipated overhead 2 Calculate the predetermined overhead rate The rate is based on total costs traceable to client jobs 3 What percentage of cost will the firm add to each job to achieve its profit target 4 Determine the total cost of the Innovation Product Inc project How much would Innovation be billed for services performed 5 Notice that only 50 percent of ASHA's other operating cost is directly traceable to specific client projects Highlight several costs that would be included in this category and difficult to trace to clients 6 Notice that 80 percent of the professional staff cost is directly traceable to specific client projects Cite several reasons that would explain why this figure isn't 100 percent ", "question_description": "\"image", "transcribed_text": "I. Problem Set 5 Advising Services Home Association (ASHA) is a consulting firm which offers professional guidance, advice, and solutions to different home-based businesses that experience any problem on which they might need help. ASHA provides consulting services in the 10 largest markets in the US and uses a job-order costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by ASHA, but not identifiable with specific clients, are charged to jobs by using a predetermined overhead application rate. Clients are billed for directly chargeable costs, overhead, and a markup. Miley Danke, ASHA's controller, anticipates the following costs for 20X7: Percentage of Cost Directly Cost Professional staff salaries.. $3,750,000 Administrative support staff. 450,000 Photocopying 75,000 Travel.. 375,000 Other operating costs.. 150,000 Total $4,800,000 Traceable to Clients 80% 60% 90% 90% 50% The firm's partners are planning to add a percentage markup on total cost to achieve that figure for 20X7 and they want to make a $960,000 profit for the firm. On February 6, 20X7, ASHA completed work on a new project for Innovation Products Inc. Costs incurred: professional staff salaries, $61,500; administrative support staff, $3,900; photocopying, $750; travel, $6,750; and other operating costs, $2,100. Required: 1. Determine ASHA's total traceable costs for 20X7 and the firm's total anticipated overhead. 2. Calculate the predetermined overhead rate. The rate is based on total costs traceable to client jobs. 3. What percentage of cost will the firm add to each job to achieve its profit target? 4. Determine the total cost of the Innovation Product Inc. project. How much would Innovation be billed for services performed? 5. Notice that only 50 percent of ASHA's other operating cost is directly traceable to specific client projects. Highlight several costs that would be included in this category and difficult to trace to clients. 6. Notice that 80 percent of the professional staff cost is directly traceable to specific client projects. Cite several reasons that would explain why this figure isn't 100 percent.", "related_book": { "title": "Intermediate accounting", "isbn": "978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094", "edition": "7th edition", "authors": "J. David Spiceland, James Sepe, Mark Nelson", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/270.jpg", "uri": "\/textbooks\/intermediate-accounting-7th-edition-270", "see_more_uri": "" }, "free_related_book": { "isbn": "3319816195", "uri": "\/textbooks\/strategic-innovative-marketing-4th-ic-sim-mykonos-greece-2015-1st-edition-978-3319816197-139279", "name": "Strategic Innovative Marketing 4th Ic Sim Mykonos Greece 2015", "edition": "1st Edition" }, "question_posted": "2024-05-27 00:07:13", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/the-home-depot-inc-hd-operates-over-2200-home-improvement", "description": "The Home Depot, Inc. (HD) operates over 2,200 home improvement retail stores and is a competitor of Lowe's (LOW). 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