Exercise 1 Colt Carpenters the main Sed Theando Net What would Atividad oftbidied as the viewer Wwwwww What is the lowerede Experience between the hem. When we Direct material Direct labour totally produced Standard model SIS/unit $20/dth 800 units De Luxe model $15,000 (all) $30/dih 500 units Calculate the full costs of both models under traditional and ABC system Determine the selling price for the De Luxe model, if profit margin on selling price (markup on sales) is 25% for Traditional and ABC costing. Compare and comment Exercise 2 Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 2020: Budget Actual Indirect costs $270.000 $300,000 Annual salary of cach attorney S100,000 $110,000 Annual salary of each paraprofessional $ 29,000 $ 30,000 Total professional labor-hours 50,000 dih 60,000 dlh 1. What are the actual direct-cost rate and the actual indirect- cost rate, respectively, per professional labor-hour! 2. How much should the client be billed in an actual costing system if 200 professional labor hours are used? 3. How much should the client be billed in an normal costing system if 200 professional labor-hours are used? Exercise 1 Colt Carpenters the main Sed Theando Net What would Atividad oftbidied as the viewer Wwwwww What is the lowerede Experience between the hem. When we Direct material Direct labour totally produced Standard model SIS/unit $20/dth 800 units De Luxe model $15,000 (all) $30/dih 500 units Calculate the full costs of both models under traditional and ABC system Determine the selling price for the De Luxe model, if profit margin on selling price (markup on sales) is 25% for Traditional and ABC costing. Compare and comment Exercise 2 Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 2020: Budget Actual Indirect costs $270.000 $300,000 Annual salary of cach attorney S100,000 $110,000 Annual salary of each paraprofessional $ 29,000 $ 30,000 Total professional labor-hours 50,000 dih 60,000 dlh 1. What are the actual direct-cost rate and the actual indirect- cost rate, respectively, per professional labor-hour! 2. How much should the client be billed in an actual costing system if 200 professional labor hours are used? 3. How much should the client be billed in an normal costing system if 200 professional labor-hours are used
