Question
In: Accounting
Design Arts Associates is an interior decorating firm in Berlin. The following costs were incurred in...
Design Arts Associates is an interior decorating firm in Berlin.
The following costs were incurred in the firm’s contract to
redecorate the mayor’s offices.
| Direct material used | 4,000 | euros | |
| Direct professional labor | 6,000 | euros | |
The firm’s budget for the year included the following
estimates:
| Budgeted overhead | 400,000 | euros | |
| Budgeted direct professional labor | 250,000 | euros | |
Overhead is applied to contracts using a predetermined overhead
rate calculated annually. The rate is based on direct professional
labor cost.
Required:
Calculate the total cost of the firm’s contract to redecorate the
mayor’s offices.
Solutions
Expert Solution
Calculation of the total cost of the firm’s contract to redecorate the mayor’s offices:
Pre-determined overhead rate = (Budgeted overhead/Budgeted direct professional labor) *100
Hence rate = (400000/250000)*100 = 160%
| Particulars | Amount (In Euros) |
| Direct Material Used | 4000 |
| Direct professional labor | 6000 |
| Applied Overhead (6000*160%) | 9600 |
| Total | 19600 |
Therefore, total cost of the firm’s contract to redecorate the mayor’s offices 19,600 Euros.
ekkarill92 answered 2 years agoRelated Solutions
Classifying Costs The following is a list of costs that were incurred in the production and...
Classifying Costs
The following is a list of costs that were incurred in the
production and sale of large commercial airplanes:
Classify each cost as either a product cost or a period cost.
Indicate whether each product cost is a direct materials cost, a
direct labor cost, or a factory overhead cost. Indicate whether
each period cost is a selling expense or an administrative
expense.
Costs
Classification
a. Cost of electronic guidance system
installed in the airplane cockpit
b. Special...
Classifying Costs The following is a list of costs that were incurred in the production and...
Classifying Costs
The following is a list of costs that were incurred in the
production and sale of large commercial airplanes:
Classify each cost as either a product cost or a period cost.
Indicate whether each product cost is a direct materials cost, a
direct labor cost, or a factory overhead cost. Indicate whether
each period cost is a selling expense or an administrative
expense.
Costs
Classification
a. Salary of chief compliance officer of
company
b. Power used by painting...
Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an...
Agan Interior Design provides home and office decorating
assistance to its customers. In normal operation, an average of 2.1
customers arrive each hour. One design consultant is available to
answer customer questions and make product recommendations. Agan's
management would like to evaluate two alternatives:
Use one consultant with an average service time of 8 minutes
per customer.
Expand to two consultants, each of whom has an average service
time of 10 minutes per customer.
If the consultants are paid $16...
Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an...
Agan Interior Design
provides home and office decorating assistance to its customers. In
normal operation, an average of 2.7 customers arrive each hour. One
design consultant is available to answer customer questions and
make product recommendations. The consultant averages 10 minutes
with each customer.
Compute the operating characteristics of the customer waiting
line, assuming Poisson arrivals and exponential service times. If
required, round your answers to four decimal places.
Lq
=
L
=
Wq
= hours
W
= hours
Pw
=
Service...
Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an...
Agan Interior Design provides home and office decorating
assistance to its customers. In normal operation, an average of 2.9
customers arrive each hour. One design consultant is available to
answer customer questions and make product recommendations. The
consultant averages 12 minutes with each customer.
Compute the operating characteristics of the customer waiting
line, assuming Poisson arrivals and exponential service times. If
required, round your answers to four decimal places.
Lq
=
L
=
Wq
=
hours
W
=
hours
Pw...
During the month of January, the following costs were incurred:
During the month of January, the following costs were incurred:
2010
Jan 8 Purchased Materials for cash, $150,000
Jan 10 Requisition for Direct Materials that were put into production, $100,000
Jan 20 Requisitioned for Indirect Materials that were put into production, $4,000.
Jan 23 Direct Labor cost incurred during the period, $60,000 when the labor rate per hour was $5.
Jan 25 Indirect labor cost incurred during the month of January is $6,000.
Jan 28 Paid factory supervisor’s salaries...
The following is a list of costs that were incurred in the production and sale of...
The following is a list of costs that were incurred in the
production and sale of large commercial airplanes:
Classify each cost as either a product cost or a period cost.
Indicate whether each product cost is a direct materials cost, a
direct labor cost, or a factory overhead cost. Indicate whether
each period cost is a selling expense or an administrative
expense.
p. Metal used for producing the airplane
body
q. Annual fee to a celebrity to promote the...
Vista Design is an interior design firm. The firm uses a job cost system in which...
Vista Design is an interior design firm. The firm uses a job
cost system in which each client is a different "job."Vista Design
traces direct labor, licensing costs, and travel costs directly
to each job (client). It allocates indirect costs to jobs based on
a predetermined indirect cost allocation rate computed as a
percentage of direct labor costs
At the beginning of the current year, managing partner Brenna
Gladstone prepared the following budget:
Direct labor hours (professional). . . ....
Selected transactions for B. Madar SE, an interior decorating firm, in its first month of business,...
Selected transactions for B. Madar SE, an interior decorating
firm, in its first month of business, are shown below.
Jan. 2 3 9 11 16 20 23 28
Invested €15,000 cash in the business in exchange for ordinary
shares. Purchased used car for €7,000 cash for use in the
business.
Purchased supplies on account for €500.
€1,800 of services were performed and billed.
Paid €200 cash for advertising.
Received €700 cash from customers billed on January 11. Paid
creditor €300...
Problem 11-21 (Algorithmic) Agan Interior Design provides home and office decorating assistance to its customers. In...
Problem 11-21 (Algorithmic)
Agan Interior Design provides home and office decorating
assistance to its customers. In normal operation, an average of 2.7
customers arrive each hour. One design consultant is available to
answer customer questions and make product recommendations. Agan's
management would like to evaluate two alternatives:
Use one consultant with an average service time of 8 minutes
per customer.
Expand to two consultants, each of whom has an average service
time of 10 minutes per customer.
If the consultants...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Write a program that takes two integer arrays a and b of size n from the...
- Discuss the meanings of absolute. Discuss cultural relativism and cultural absolutism. Discuss types of propositions. Discuss...
- What are the pros and cons of inpatient treatment centers? Provide at least two pros and...
- 1. What would be the yield to maturity for a bond with a $70 coupon, interest...
- PYTHON Exercise 5. Guess the number 1. Develop a “Guess the number” game. Write a program...
- explain ricardos theory of comparative advantage and use an example
- Java Linked Lists I want a simple program that reads two text files that contains an...
ADVERTISEMENT