User Account

All Pages

Anderson construction assembles residential houses it uses

Assignment Help Finance Basics
Reference no: EM13575059

Anderson Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2006, Anderson budgets 2007 assembly-support costs to be $8,000,000 and 2007 direct labor-hours to be 160,000. At the end of 2007, Anderson is comparing the costs of several jobs that were started and completed in 2007.

 

                                                Laguna Model                       Mission Model

Construction period                Feb-June 2007                        May-Oct 2007

Direct materials                       $106,450                                 $127,604

Direct labor                             $36,276                                   $41,410

Direct labor-hours                   900                                          1,010

Direct materials and direct labor are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labor-hours are worked. The 2007 actual assembly-support costs were $6,888,000, and the actual direct labor-hours were 164,000.

1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ?

2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing?

3. Why might Anderson Construction prefer normal costing over actual costing?

Reference no: EM13575059

Questions Cloud

If shares of common stock of the samson co offer an : if shares of common stock of the samson co. offer an expected total return of 12 and if the growth rate in future
Suppose that the expected variable costs of otobais : suppose that the expected variable costs of otobais project are yen33 billion a year and that fixed costs are zero. how
The general term employed to indicate an expense that has : the general term employed to indicate an expense that has not been paid and has not been recongnized in the accounts by
Using the afn equation determine uptons self-supporting : upton computers makes bulk purchases of small computers stocks them in conveniently located warehouses ships them to
Anderson construction assembles residential houses it uses : anderson construction assembles residential houses. it uses a job-costing system with two direct-cost categories direct
Assume that a company records purchases net of discount if : assume that a company records purchases net of discount. if the company bought merchandise valued at 10000 on credit
Calculate the after-tax cost of preferred stock for : calculate the after-tax cost of preferred stock for bozeman-western airlines inc. which is planning to sell 10 million
What is the difference between management accounting and : what is the difference between management accounting and financial accounting and what role do these two areas play in
Maxwell electronics had net income of 15 million last year : maxwell electronics had net income of 15 million last year and had 3 million common shares outstanding. they declared a

Reviews

Write a Review

Finance Basics Questions & Answers

  Prepare a trend analysis of operating ratios

Your parents have been left a substantial amount of money and want to invest it in a corporation. They want your recommendation but also want to see the reasoning behind your choice. Make a trend analysis of operating ratios

  Currency effects

When South Korea's export growth stalled, some South Korean firms suggested that South Korea's primary export problem was the weakness in the Japanese yen.

  Constant nominal policy-partial-adjustment strategy

Delta Corporation earned $2.50 per share during fiscal year 2008 and paid cash dividends of $1.00 per share. What is Delta's payout ratio for fiscal year 2008?

  Determine the projects roe

Your corporation, which is financed entirely with common equity, plans to manufacture a new item, a cell phone that can be worn like a wristwatch.

  What is the market value of l

The other way around: you invest $60 into stocks of L. By combining a stock purchase of U and deposit/loan, provide a optional strategy that provides the same profits.

  What is the bonds nominal yield to call

Walker Industries has a bond outstanding with 12 years to maturity, a 9% coupon paid semiannually, and a $1,000 par value. The bond has a 7% nominal yield to maturity, but it can be called in 3 years at a price of $1,045. What is the bond's nomina..

  Laurie belk is president of better books she has no

laurie belk is president of better books. she has no accounting background. belk cannot understand why fair value is

  Foreign travel services has net income of 48400 total

foreign travel services has net income of 48400 total assets of 219000 total equity of 154800 and total sales of

  Compute the initial outlay for each of these options

marques gourmet coffeejose ricardo marques from san pedro brazil is a fourth generation coffee plantation grower.nbsp

  Firm a intends to form a new division which will

firm a intends to form a new division which will effectively double its assets. the firm is currently financed entirely

  What is the present value of 38000 to be received in 8

what is the present value of 38000 to be received in 8 years if interest rates are 10.1 and interest is compounded 3

  Determine the equipment after-tax salvage value

Liberty Services is now at the end of final year of a project. The equipment originally cost $22,500, of which 75 percent has been depreciated. The company can sell the used equipment today for $6,000, and its tax rate is 40 percent.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd