Determine the total costs per billable hour

Assignment Help Cost Accounting
Reference no: EM13516384

Methods of Estimating Costs: Account Analysis

A consulting firm's accounting records show the following costs for year 1:

Direct materials supplies

$ 360,000

Direct labor

2,580,000

Total overhead

1,140,000

Production was 150,000 billable hours. Fixed overhead was $600,000. For year 2, direct materials costs are expected to increase by 10 percent per unit. Direct labor costs are expected to increase by 15 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent.

Required

a. Year 2 production is expected to be 195,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2?

b. Determine the total costs per billable hour for year 1 and year 2.

Reference no: EM13516384

Questions Cloud

The purpose of the study : The purpose of the study
Explain what is the percentage of khp in the sample : In the titration of an impure sample of KHP, it was found that 30.6 mL of 0.100 M NaOH was required to react completely with 0.745 g of sample. What is the percentage of KHP in this sample
Should mobility make rear wheel assemblies : Should Mobility make rear wheel assemblies or buy them from Trailblazers? Prepare a schedule that shows the differential costs per rear wheel assembly.
Except for the corners and edges : If you take a marker & start from a corner on a cube, what is the maximum number of edges you can trace across if you never trace across the same edge twice, never remove the marker from the cube, & never trace anywhere on the cube, except for the co..
Determine the total costs per billable hour : What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2 - Determine the total costs per billable hour for year 1 and year 2.
Find how much power is being dissipated by the appliance : An idealized voltmeter is connected across the terminals of a 15.0 V battery, and a 75 ohm appliance is also connected across its terminals. how much power is being dissipated by the appliance
State how many moles of acid khp were orinignally present : Samantha Muir dissolved 0.31 grams of KHP in 25.0 ml of water. She found out that it required 15.5 ml of NaOH to reach the endpoint of titration. How many moles of the acid, KHP, were orinignally present before the addition of the base
The strengths and limitations of the research methodology : Assess the strengths and limitations of the research methodology used to produce the results in the course text The Road to Organic Growth.
Determine which marble is the heaviest one using the scale : How can you determine which marble is the heaviest one using the scale & in 2 weighings?

Reviews

Write a Review

Cost Accounting Questions & Answers

  Prepare the cash flows from operating activities section

Prepare the Cash Flows from operating Activities section of the statement of cash flows using the indirect method.

  Consider that you are preparing a seminar on

consider that you are preparing a seminar on cost-volume-profit analysis for non accountants.various potential

  Prepare sunday starrs cash budget

Prepare Sunday Starr's cash budget for January and February in columnar format.

  Questionclark sells an office building in the current year

questionclark sells an office building in the current year for 600000. the building was purchased in 1981 for 350000

  How the meei administrators might use the information

Analyse the MEEI Case and determine how the MEEI administrators might use the information from the Activity Based Costing System?

  Effect of hosting the basketball game

Effect of hosting the basketball game and effect of sale of season tickets

  Prepare a statement of financial position

Prepare general journal entries to account for the capital contributed by the partners. Include narrations and prepare a statement of financial position on the day of formation.

  Prepare the necessary entries to close the general fund

Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the City of Martinville for the year ended June 30, 2012. Please make sure you end with the Fund Balance for the year ending June 30, 2012.

  Determine the predetermined overhead rate for november

Gokey Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $5.10 per direct labor-hour.

  Question1a chester corporation is launching a new product

question1a chester corporation is launching a new product that is expected to cost 75 in direct materials 50 in direct

  Determine long-run prices

List and explain three ways a firm can determine long-run prices - explain when each method would be most suitable and the strengths and weaknesses of each method.

  Comparison of alternatives using npv analysis

if matieral prices go up, this makes the model 5200 less attractive since the matieral costs per unit are currently .40 vs .38 on model 2600.

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