Job-Order Costing in a Consulting
Firm

JLR Enterprises provides consulting services throughout California and uses a job-order costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR, but not identifiable with specific clients, are charged to jobs by using a predetermined overhead application rate. Clients are billed for directly chargeable costs, overhead, and a markup. JLR’s director of cost management, Brent Dean, anticipates the following costs for the upcoming year:

Cost Percentage of Cost Directly Traceable to Clients

Professional staff salaries ................................ $2,500,000 ..................................... 80%
Administrative support staff ............................. 300,000 ..................................... 60%
Travel ................................................................ 250,000 ..................................... 90%
Photocopying ................................................... 50,000 ..................................... 90%
Other operating costs ...................................... 100,000 ..................................... 50%
Total .............................................................. $3,200,000 .....................................

The firm’s partners desire to make a $640,000 profit for the firm and plan to add a percentage markup on total cost to achieve that figure.

On March 10, JLR completed work on a project for Martin Manufacturing. The following costs were incurred: professional staff salaries, $41,000; administrative support staff, $2,600; travel, $4,500; photocopying, $500; and other operating costs, $1,400.

Required:
1. Determine JLR’s total traceable costs for the upcoming year and the firm’s total anticipated overhead. $2,500,000
2. Calculate the predetermined overhead rate. The rate is based on total costs traceable to client jobs.
3. What percentage of cost will JLR add to each job to achieve its profit target?
4. Determine the total cost of the Martin Manufacturing project. How much would Martin be billed for services performed?
5. Notice that only 50 percent of JLR’s other operating cost is directly traceable to specific client projects. Cite several costs that would be included in this category and difficult to trace to clients.
6. Notice that 80 percent of the professional staff cost is directly traceable to specific client projects. Cite several reasons that would explain why this figure isn’t 100 percent.

Tech Com's. predicted 2017 variable and fixed costs are as follows: Variable costs Fixed costs Manufacturing 480,000 315900 Selling and Administrative 216,000 60500 Total 696,000 376,400 Tech com. produces a wide variety of computer interface devices. Per unit manufacturing cost information about one of these products, a high-capacity flash drive is as follows: Direct material $10 Direct labor 9 Variable Manufacturing Overhead 7 Fixed Manufacturing Overhead 9 Total manufacturing costs $35 The following is the variable selling and administrative costs for the flash drive: $6 Management has set a 2017 target profit on the flash drive of: $250,000 Required:

determine the mark up percentage on manufacturing casts required to earn the desired profit?

use the manufacturing cost mark up to determine a suggested selling price for the flash drive?

evaluate the variable and the manufacturing cost approaches to determine the mark up percentage.

2. The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses)   as a percentage of sales. As a result, net income as a percentage of sales  . The sales promotion campaign appears to have been  . While selling expenses as a percent of sales   slightly, the   cost was more than made up for by   sales.

The time required to complete a project is normally distributed with a mean of 78 weeks and a standard deviation of 10 weeks. The construction company must pay a penalty if the project is not finished by the due date in the contract. If a construction company bidding on this contract wishes to be 90 percent sure of finishing by the due date, what due date (project week #) should be negotiated?

1. Statement of work (SOW) detailing the scope and major deliverables (½ page)
2. Deliverable specifications/requirements, features, and tasks (½ page)

I am working at a mutlifamily building construction and working on a request of proposal for a construction company or contractor to hire my company. what should i include or write about in these sections. I am suppose to be the project manager

Comparison of two hypothetical cases:

Project 1: New construction of a highrise building in Wall Street, Manhattan, NYC.

Project 2: New construction of LNG tanks in Cameron, Louisiana

Two projects are greatly different in terms of project type and location. Discuss and compare unique impacts on the environment and public that may occur in each project.

A construction crane collapsed while working on a new building for Metro City. A pedestrian was killed. The husband of the victim is suing Metro City and the construction company. The city attorney, in consultation the city’s liability insurer and the construction company, has offered two out-of-court settlements to the husband of the victim. Here are the settlement options

Option 1: Four annual payments of $225,000 with the first payment one year from today.

Option 2: Five Payments of $200,000 with the payments one year, three years, five years, seven years, and nine years from today.

Assuming a 6% discount rate, which settlement option is the best from the perspective of Metro City?

A group students collected data on the speed of vehicles traveling through a construction zone on a state highway, where the posted speed was 45 mph. The recorded speed (in mph) of 15 randomly selected vehicles is given below.

35

37

40

41

42

44

46

49

52

54

58

61

64

66

67

1. Use Excel Data Analysis to find the mean, median, and mode of the data set. Make sure that you clearly state or point out which numbers are which.

2.Assuming speeds are approximately normally distributed, use Data Analysis to construct a 95% confidence interval for the true mean speed of drivers in this construction zone. Interpret the interval.

3.Construct a 99% confidence interval for the true mean speed of drivers in this construction zone. Interpret the interval.

4.Compare the widths of the 95% and 99% confidence intervals.

5.What conclusions do you draw about the speeds people drive in this construction zone?