M3 OAES Assigned Questions

Read the Success on the OAES document for full instructions about how to use this system.

Assigned questions for Module 3 are:

Q11-2: Compare job costing with process costing.

Q11-3: Little Known Tax, Ltd prepares tax returns for clients. The firm employs six bookkeepers who cost the firm 10,000 in total each week. Each bookkeeper is expected to charge 30 hours per week to client jobs. At the end of the week the total hours charged by the six bookkeepers to client jobs is 150. How much is spare capacity?

Q11-4: Last Group has a rental cost of 25,000 per month with a four-year lease term. Casual staff are employed on a weekly basis to carry out telephone sales. The cost of casual staff is 12,000 per month and telephone call costs are 5,000 per month. An offshore call central point has offered to carry out the telephone sales activity from its own premises and using its own staff and telephone services for a fixed payment of 15,000 per month. Should Last Group accept or reject the outsourcing proposal from the call central point? Please show all calculations.

Q12-1: An accounting consultant is paid a salary of 80,000 per annum and his employer pays up to of 18% of base salary for medical, life, and dental insurance. His employer also contributes toward a retirement plan at a maximum of 8% of base salary. Assuming the consultants works 250 days per year and is productive for 81% of that time, what is his daily cost rate?