Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

solve under ABC costing. Rounded all answers to whole dollars. For New Lawn Installations: 1. Total Overhead Applied under ABC Costing 2. Operating Income under

solve under ABC costing.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Rounded all answers to whole dollars. For New Lawn Installations: 1. Total Overhead Applied under ABC Costing 2. Operating Income under ABC Costing 3. Total Overhead Actual under ABC Costing 4. Over- or Under-Applied Overhead under ABC Costing 5. Operating Income Adjusted Enter profit as a positive number; loss as a negative number. 6. Compute Over-Applied / Under-Applied for Estimating Jobs 7. Compute Over-Applied / Under-Applied for Travel to Jobs For Low Maintenance Lawns: 1. Total Overhead Applied under ABC Costing 2. Operating Income under ABC Costing 3. Total Overhead Actual under ABC Costing 4. Over- or Under-Applied Overhead under ABC Costing 5. Operating Income Adjusted Enter profit as a positive number; loss as a negative number. 6. Compute Over-Applied / Under-Applied for Designing Landscapes 7. Compute Over-Applied / Under-Applied for Maintaining Landscapes For High Maintenance Lawns: 1. Total Overhead Applied under ABC Costing 2. Operating Income under ABC Costing 3. Total Overhead Actual under ABC Costing 4. Over- or Under-Applied Overhead under ABC Costing 5. Operating Income Adjusted Enter profit as a positive number; loss as a negative number. 6. Compute Over-Applied / Under-Applied for Travel to Jobs 7. Compute Over-Applied / Under-Applied for Maintaining Landscapes Green Thumb Landscaping: Performance Report under Normal Costing via ABC Using normal costing, compute operating income for each operating department. Then, compute the Indirect Costs Over-Applied / UnderApplied for each operating department and the actual operating income. Does the variance increase or decrease operating income? A decrease in operating income is not preferred and Unfavorable. Thus, we will enter unfavorable variance (such as underapplied overhead) as a negative number bocause it decreases roported operating income. An increase in operating income is preferred and Favorable. Thus, we will enter favorable varlance (such overapplied overhead) as a positive number because it increases reported operating income. Green Thumb Landscaping Budgeted Indirect Costs \begin{tabular}{lc} \hline Indirect Labor & $216,000 \\ Depreciation on Tools \& Equipment & $400,000 \\ Rent Expense for Trucks \& Heavy Eq & $110,000 \\ Salaries of Operations Supervisors & $540,000 \\ Office Rent \& Utilities & $108,000 \\ Office Salaries & $240,000 \\ Landscape Designers Salaries & $280,000 \\ Marketing Expenses & $60,000 \\ Total & $1,954,000 \\ \hline \end{tabular} EstimatingJobsActivityPoolNumberofEstimatesActivityMeasure3,900BudgetedActivity Designing Landscapes Number of Designs 920 TravelToJobsNumberofJobs3.000 InstallingLandscapesNumberofNewLandscapes500 MaintainingLandscapesNumberofMaintenanceJobs1,500 Resource Consun Designing IndirectLaborDepreciationonTools&EquipmentRentExpenseforTrucks&HeavyEqSalariesofOperationsSupervisorsOfficeRent&UtilitiesOfficeSalariesLandscapeDesignersSalariesMarketingExpensesEstimatingJobs20%10%20%20%40%70%10%60%0%0%0%20%40%10%80%0%Landscapes Actual Indirect Costs \begin{tabular}{lcc} Indirect Labor & $240,000 & ($24,000) \\ Depreciation on Tools & $370,000 & $30,000 \\ Rent Expense for Truc & $130,000 & ($20,000) \\ Salaries of Operations & $500,000 & $40,000 \\ Office Rent \& Utilities & $100,000 & $8,000 \\ Office Salaries & $200,000 & $40,000 \\ Landscape Designers & $300,000 & ($20,000) \\ Marketing Expenses & $50,000 & $10,000 \\ \cline { 2 - 3 } Total & $1,890,000 & $64,000 \end{tabular} nption Rates Actual Activity Green Thumb Landscaping: Performance Report under Normal Costing Using normal costing. compute operating income for each operating department. Then, compute the Indirect Costs Over-Applied / UnderApplsed for each operating department and the actual operating income. Does the variance increase or decrease operating income? A decrease in operating income is not preferred and Unfavorable. Thus, we wili enter unfavorable variance (such as underapplied overhead) as a negative number because it decreases reported operating income. An increase in operating income is preferred and Favorable. Thus, we will enter favorable variance (such overapplied overhead) as a positive number because it increases reported operating income. Rounded all answers to whole dollars. For New Lawn Installations: 1. Total Overhead Applied under ABC Costing 2. Operating Income under ABC Costing 3. Total Overhead Actual under ABC Costing 4. Over- or Under-Applied Overhead under ABC Costing 5. Operating Income Adjusted Enter profit as a positive number; loss as a negative number. 6. Compute Over-Applied / Under-Applied for Estimating Jobs 7. Compute Over-Applied / Under-Applied for Travel to Jobs For Low Maintenance Lawns: 1. Total Overhead Applied under ABC Costing 2. Operating Income under ABC Costing 3. Total Overhead Actual under ABC Costing 4. Over- or Under-Applied Overhead under ABC Costing 5. Operating Income Adjusted Enter profit as a positive number; loss as a negative number. 6. Compute Over-Applied / Under-Applied for Designing Landscapes 7. Compute Over-Applied / Under-Applied for Maintaining Landscapes For High Maintenance Lawns: 1. Total Overhead Applied under ABC Costing 2. Operating Income under ABC Costing 3. Total Overhead Actual under ABC Costing 4. Over- or Under-Applied Overhead under ABC Costing 5. Operating Income Adjusted Enter profit as a positive number; loss as a negative number. 6. Compute Over-Applied / Under-Applied for Travel to Jobs 7. Compute Over-Applied / Under-Applied for Maintaining Landscapes Green Thumb Landscaping: Performance Report under Normal Costing via ABC Using normal costing, compute operating income for each operating department. Then, compute the Indirect Costs Over-Applied / UnderApplied for each operating department and the actual operating income. Does the variance increase or decrease operating income? A decrease in operating income is not preferred and Unfavorable. Thus, we will enter unfavorable variance (such as underapplied overhead) as a negative number bocause it decreases roported operating income. An increase in operating income is preferred and Favorable. Thus, we will enter favorable varlance (such overapplied overhead) as a positive number because it increases reported operating income. Green Thumb Landscaping Budgeted Indirect Costs \begin{tabular}{lc} \hline Indirect Labor & $216,000 \\ Depreciation on Tools \& Equipment & $400,000 \\ Rent Expense for Trucks \& Heavy Eq & $110,000 \\ Salaries of Operations Supervisors & $540,000 \\ Office Rent \& Utilities & $108,000 \\ Office Salaries & $240,000 \\ Landscape Designers Salaries & $280,000 \\ Marketing Expenses & $60,000 \\ Total & $1,954,000 \\ \hline \end{tabular} EstimatingJobsActivityPoolNumberofEstimatesActivityMeasure3,900BudgetedActivity Designing Landscapes Number of Designs 920 TravelToJobsNumberofJobs3.000 InstallingLandscapesNumberofNewLandscapes500 MaintainingLandscapesNumberofMaintenanceJobs1,500 Resource Consun Designing IndirectLaborDepreciationonTools&EquipmentRentExpenseforTrucks&HeavyEqSalariesofOperationsSupervisorsOfficeRent&UtilitiesOfficeSalariesLandscapeDesignersSalariesMarketingExpensesEstimatingJobs20%10%20%20%40%70%10%60%0%0%0%20%40%10%80%0%Landscapes Actual Indirect Costs \begin{tabular}{lcc} Indirect Labor & $240,000 & ($24,000) \\ Depreciation on Tools & $370,000 & $30,000 \\ Rent Expense for Truc & $130,000 & ($20,000) \\ Salaries of Operations & $500,000 & $40,000 \\ Office Rent \& Utilities & $100,000 & $8,000 \\ Office Salaries & $200,000 & $40,000 \\ Landscape Designers & $300,000 & ($20,000) \\ Marketing Expenses & $50,000 & $10,000 \\ \cline { 2 - 3 } Total & $1,890,000 & $64,000 \end{tabular} nption Rates Actual Activity Green Thumb Landscaping: Performance Report under Normal Costing Using normal costing. compute operating income for each operating department. Then, compute the Indirect Costs Over-Applied / UnderApplsed for each operating department and the actual operating income. Does the variance increase or decrease operating income? A decrease in operating income is not preferred and Unfavorable. Thus, we wili enter unfavorable variance (such as underapplied overhead) as a negative number because it decreases reported operating income. An increase in operating income is preferred and Favorable. Thus, we will enter favorable variance (such overapplied overhead) as a positive number because it increases reported operating income

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_2

Step: 3

blur-text-image_3

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

Principles Of Food Beverage And Labor Cost Controls

Authors: Paul R. Dittmer, J. Desmond Keefe

8th Edition

0471429929, 978-0471429920

More Books

Students also viewed these Accounting questions

Question

14. Let X be uniform over (0, 1). Find E[X|X Answered: 1 week ago

Answered: 1 week ago

Question

3 What are the aims of appraisal?

Answered: 1 week ago

Question

7 Compare and contrast evaluative and developmental appraisal.

Answered: 1 week ago