Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

See below for attached questions. Requirements 1, 2 and 3. Information relating to General Computer Inc. follows: 0 {Click the icon to view the company's

image text in transcribedimage text in transcribedimage text in transcribed

See below for attached questions.

Requirements 1, 2 and 3.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Information relating to General Computer Inc. follows: 0 {Click the icon to view the company's information} 1. Compute General Computers indirectcost allocation rate. 2. Compute the total costs assigned to the Sovak and Cordaro engagements. 3. Compute the operating income from the Sovak and Cordaro engagements. Requirement 1. Compute General Computefs indirect cost allocation rate. First identify the formula used to compute the indirect cost allocation rate, then compute the rate. {Round your answer to two decimal places} I: Indirect cost allocation rate (per hr} Requirement 2. Compute the total costs assigned to the Sovak and Cordaro engagements. {Round your answers to the nearest whole dollar); I I Sovak Corda ro l : Total c osts Choose from any.r list or enter any number in the input felds and then continue to the next question. Information relating to General Computer Inc. follows: 0 {Click the icon to View the company's information} 1. Compute General Computers indirect cost allocation rate. 2. Compute the total costs assigned to the Sovak and Cordaro engagements. 3. Compute the operating income from the Sovak and Cordaro engagements. nti'qullclllclll L. LrU'IIIIJLILC LIIC LULGI LUULU bblgllcu LU LIIU OLIVER QIIU LIUIUQIU CIIHG'HCIIICIILU. inuullu 'Uul allhwtb [U \"It: Ilti'lti'hl WIIUIC UUIII.' Sovak Cord aro llg v ll Total COStS = = Requirement 3. Compute the operating income from the Sovak and Cord aro engagements. {Round your answers to the nearest whole dollar.} Sovak Cordaro v | Less: Operating income I Choose from any list or enter any number in the input elds and then continue to the next question. o More Info Information relating to General Computer Inc. follows: 0 {Click the icon to View the com pa ny's information]; 1. Compute General Computers indirect cost allocation rate. 2. Compute the total costs assigned to the Sovak and Cordaro en 3. Compute the operating income from the Soyak and Cordaro en nqulllllb'lll L. LIUIIIIJULU Lllti LU'LdI LUtILtI dbblylltu LU' Lllti GWdh . General Computer Inc. is a technology consulting rm focused on website development and integration of internet business applications. President Arabella Lennox's ear is ringing after an unpleasant call om client Jonathan Sovak. Sovak was irate after opening his bill for General Computefs redesign of his company's website. Sovak said that General Computefs major competitor, Beta Applications, charged much lower fees to another company for which Sovak serves on the board I of directors. Lennox is puzzled for two reasons. First, she is condent that her rm knows l website design and support as well as any of General Computefs competitors. l Lennox cannot understand how Beta Applications can undercut General Computefs rates and still make a prot. But Beta Applications is reputed to be very protable. Second, just yesterday Lennox received a call om client Keith Cordaro. Cordaro was happy with the excellent service and reasonable fees Lennox charged him for adding a databasedriven jobposting feature to his company's website. Lennox was surprised by Cordaro's compliments because this was an Soyak Total costs Requirement 3. Compute the operating income om the Sovak a v I unusual job for General Computer that required development ofcomplex database _ management and control applications, and she had felt a little uneasy accepting it. L999: I Like most consulting rms, General Computer traces direct labour to individual _ _ :l I engagements [jobs]. General Computer allocated indirect costs to engagements Operating income = ' haqegLnn djmrt labour hours lennox is hanmrwithibis CHOOSE ffOl'Tl any \"El 0f BRIEF any number In the Input elds a Print Done Save for LBIEI Information relating to General Computer Inc. follows: 0 {Click the icon to view the company's infomlation.) 1. Compute General Computer's indirect cost allocation rate. 2. Compute the total costs assigned to the Sovak and Cordaro e 3. Compute the operating income 'Tom the Sovak and Cordaro en t. MJ'ITI'PULE LI'TE LtJWCUIILEI dE'J'I'gTIN Lu'l'l'ld m Sova k mm ; Requirement 3. Compute the operating income from the Sovak . Sova k LrJ Less: Operating income CHOOSE from any "31 or enter any number in the input elds a Save for Later 0 More Info of directors. Lennox is puzzled for two reasons. First, she is condent that her rm knows website design and support as well as any of General Computefs competitors. Lennox cannot understand how Beta Applications can undercut General Computefs rates and still make a prot. But Beta Applications is reputed to be very protable. Second, just yesterday Lennox received a call from client Keith Cordaro. Cordaro was happy with the excellent senrice and reasonable fees Lennox charged him for adding a databasedn'ven job-posting feature to his company's website. Lennox was surprised by Cordaro's compliments because this was an unusual job for General Computer that required development of complex database management and control applications, and she had felt a little uneasy accepting it. Like most consulting rms, General Computer traces direct labour to individual engagements {jobs}. General Computer allocated indirect costs to engagements using a budgeted rate based on direct labour hours. Lennox is happy with this system, which she has used since she established General Computer in 1996. Lennox expects to incur $T22,000 of indirect costs this year, and she expects her rm to work 5,100 direct labour hours. Lennox and the other systems consultants earn $335 per hour. Clients are billed at 180% of direct labour cost. Last month, General Computefs consultants spent 110 hours on Sovak's engagement. They also spent 110 hours on Cordaro's engagement. l pm ll Done |

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

Step: 3

blur-text-image

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

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

5th Canadian edition

1259269868, 978-1259269868

More Books

Students also viewed these Accounting questions

Question

How easy the information is to remember

Answered: 1 week ago

Question

The personal characteristics of the sender

Answered: 1 week ago