Determine the total cost of the consulting job using the abc

Assignment Help Managerial Accounting
Reference no: EM132577283

Question 1: Enlighten Services, Inc., a management consulting firm, has been using a single predetermined overhead allocation base to allocate the indirect costs. The direct labor rate is $50 per hour. MiriamLevy, the president of Enlighten, decided to develop an ABC system to accurately allocate the indirect costs. She identified 2 activities related to the total indirect costs-travel and information technology (IT) support. During the current month, Enlighten's consultants spent 150 labors for Malta, Inc. The job required the professionals to travel 300 miles in total. Determine the total cost of the consulting job using the ABC system.

Activity.                           Allocation Base.              Estimated costs.                Estimated quantity of allocation base

Travel.                              Miles driven.                      $83,000.                          4,000 miles
IT support.                   Direct labor hours.                56,000.                          1,500 DLHr
Total.                                                                     $139,000

Reference no: EM132577283

Questions Cloud

Develop a schematic diagram on the future plan : Air cargo has experienced a renaissance in the last several years because of skyrocketing international e-commerce
Find which is not considered part of period costs : Under the variable costing method, which is not considered part of period costs? Variable Selling and Administrative Expenses./Variable Manufacturing Overhead
Reasoning for the adaptation of the strategy : With Berjaya Group as a reference, discuss the type of corporate level strategies that has been adopted. From the strategy opted
Why does social loafing cause ethical dilemmas : Why does social loafing cause ethical dilemmas? What is it about social loafing that makes it difficult to cope with on a one-to-one
Determine the total cost of the consulting job using the abc : Malta, Inc. The job required the professionals to travel 300 miles in total. Determine the total cost of the consulting job using the ABC system.
Hyper-competition and d avenii 7s framework : Based on hyper-competition and D'Avenii 7S framework, explain how Amazon and Walmart build its competitive advantages?
Fast food through online portal in karachi : For a start-up that has been working to provide fast food through online portal in Karachi
How much warranty expense must waymire report : How much warranty expense must Waymire report in its income statement and what amount of warranty liability must it report on its balance sheet
What parties might be invited to assist with risk : What parties might be invited to assist with the risk identification and what contribution could they make?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

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