Determine 2022 indirect cost rates for both consulting fees

Assignment Help Cost Accounting

Reference no: EM133326077

Assignment: Need helping breaking all of this info down, as previous questions, need to study for my Cost Accounting finals

Edited the question as a tutor told me the format was confusing, this was what we were given

The 2022 Projected Income Statement for Diamond Consulting & Tutoring follows:

Diamond Consulting & Tutoring
Income Statement
For the Projected Year 2022

Revenues
Consulting Fees $120,000
Tutoring Fees 80,000
Total Projected Revenues $200,000

Direct Costs:
Consulting Professional Expenses $70,000
Tutoring Professional Expenses 40,000
Total Direct Cost $110,000

Indirect Costs:
Consulting overhead $30,000
Tutoring overhead 20,000
Total Indirect Cost 50,000
Total Direct & Indirect Costs 160,000

Operating Income $ 40,000

Diamond Consulting and Tutoring uses a system with two categories of direct costs and two categories of indirect costs, described above. Costs are apportioned to Jobs on the basis of the two direct costs individually.

Required:
Problem 1. Determine the 2022 indirect cost rates for both Consulting Fees & Tutoring Fees categories of the business.
Problem 2. Prepare the cost per order system diagram.

Two bids are received. One for consulting identified as Job #101C and one for tutoring identified as Job #101T. Information follows:

Job #101C Consulting Fees Budgeted Rate Per Hours Budgeted Hours
Manager $65.00 8 hrs.
Senior $40.00 15 hrs.
Staff $15.00 30 hrs.

Job #101T Tutoring Fees Budgeted Rate Per Hours Budgeted Hours
Teacher $30.00 15 hrs.
Assistance $10.00 15 hrs.
Supervisor $25.00 5 hrs.

Problem 3. Calculate the budgeted cost for each of the Jobs, separately.

Problem 4. If the profit level presented in the Income Statement is to be maintained, what should be the bid price individually for Job #101C and Job #101T?

Reference no: EM133326077

Questions Cloud

What is difference between a profit center and a cost center : What is the difference between a profit center and a cost center? How might this impact transfer pricing? Generally, what are three major ways that transfer

Childhood poverty is public issue : Provide evidence that childhood poverty is a public issue in United States. Describe the personal troubles associated with child poverty in United States.

How to classify overhead costs : How to classify overhead costs using either traditional or activity-based costing - choose a company, consider its business and costing requirements

Institutional racism in criminal justice system : Learning about Institutional Racism in Criminal Justice System, How might it be useful when it comes to educational goals, personal goals, and/or career goals?

Determine 2022 indirect cost rates for both consulting fees : Determine the 2022 indirect cost rates for both Consulting Fees & Tutoring Fees categories of the business. Prepare the cost per order system diagram.

Social service program and professionally : What goals have you accomplished thus far and can you establish goals for progressing forward in the social service program and professionally

Should the US Army punish Soldiers who desecrate : Should the US Army punish Soldiers who desecrate our nations flag and conduct a minimum of one debate during the spring term. Every Cadet on a team

What is the relevant cost in each scenario : Ask a semi-retired neighbor to do the sanding, using Adam's woodshop, supplies, and sanders, and pay $10 per hour-the same amount the neighbor earns

About social reproduction theory and attainment : discuss Gates's and Agee's futures and how their futures relate to MacLeod's thesis about social reproduction theory and attainment.

User Account

All Pages