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Question - Mira Financial Advisors provides accounting and finance assistance to customers in the retail business. Mira has four professionals on staff, plus an office with six clerical staff. Total compensation, including benefits, for the professional staff runs about $753,000 per year, and it normally has about 8300 billable hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are $570,000.
Mira allocates office and administrative costs to clients monthly, using a predetermined overhead allocation rate based on billable hours. During July, Mira's professionals spent 36 hours on their client, Riley Sales. Mira adds a 25% markup on its costs to calculate the amount billed to the customer. How much should the company charge Riley Sales for the month of July?
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Joshwood wonders whether the last year's variable overhead efficiency variance was favourable or unfavourable. What do you think, and why?
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At the beginning of the process and beginning inventory is 5,000 units that are 25% complete, under FIFO equivalent units (EU) for beginning WIP are
Dixon historically collects 70% of its sales in the month of sale and 30% in the following month. How much cash does Dixon expect to collect in April
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