Cost Accounting
Dye and Dye attorneys each bill 1500 hours per year and receive pay of $100,000. 4 paralegals work 2,000 hours each for the firm and receive annual pay of $32,500. Overhead of $396,000 is anticipated of which $204,000 is attorney support and the rest is paralegal support.
Determine the overhead application rate under each of the following circumstances
a. Simplified cost approach is used based on hours
b. Simplified cost approach is used based on payroll dollars
c. Activity-based cost approach is used. Attorney support is based on labor costs and paralegal support is based on hours worked
The following accounts are maintained by the riverside man co in its general ledger. Materials, work in process, factory overhead, and accounts payable. The materials account had a debit balance of $40,000 on November 1. A summary of material transactions for November shows the following transactions.
1. Materials acquired on account, 62,000
2. Direct materials issued, 58,500
3. Direct materials returned to storeroom 1,200
4. Indirect materials issued, 3,600
5. Indirect materials returned to storeroom 550
6. Materials on hand were 200 less than the companys ledger balance
a. Prepare journal entries to record these transactions
b. Post the journal entries to t-accounts
c. Determine the balance of the materials account on nov 30th
AND IN TWO -FOUR SENTENCES
1. UNDER A PROCESS COST SYSTEM, WHY IS IT NECESSARY TO ESTIMATE THE STAGE OF DEGREE OF COMPLETION OF WORK IN PROCESS AT THE END OF THE ACCOUNTING PERIOD?
2. AN EMPLOYEE WHO MANUFACTURES GOODS FOR HER EMPLOYER EARNS 12 AN HOUR FOR REGULAR WAGES, SHES PAID TIME AND A HALF FOR ALL HOURS WORKED IN EXCESS OF 40 HOURS PER WEEK. IN A RECENT WEEK SHE WORKED 50 HOURS
A. HOW MUCH OF HER GROSS PAY THAT WEEK WAS DIRECT LABOR?
B. HOW MUCH WAS INDIRECT LABOR?
3. A COMPANY HAS 80,000 IN FIXED COSTS AND MAKES ONE PRODUCT WITH A SELLING PRICE OF 20 PER UNIT. IF VARIABLE COSTS ARE 10 PER UNIT, WHAT IS THE BREAK EVEN SALES VOLUME IN UNITS?
4. WHAT TYPE OF PRODUCTION PROCESS LENDS ITSELF TO PROCESS COSTING? WHAT IS AN EXAMPLE?
5. HOW DOES ACTIVITY-BASED COSTING DIFFER FROM TRADITIONAL METHODS OF APPLYING OVERHEAD THAT HAS GREATLY FLUCTUATING SALES DURING THE YEAR?
6. WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF A STABLE INVENTORY POLICY FOR A COMPANY THAT HAS GREATLY FLUCTUATING SALES DURING THE YEAR?
7. IN A PROCESS COST STYSTEM UNDER WHAT CONDITIONS MAY THE UNIT COSTS OF MATERIALS, LABOR AND OVERHEAD BY COMPUTED USING ONLY ONE PRODUCTION FIGURE?
8. WHY DO COMPANIES ADOPT THE LIFO METHOD OF INVENTORY COSTING?
9. EXPLAIN THE CONCEPT OF PEANUT-BUTTER COSTING IN A SERVICE FIRM
10. WHAT MIGHT CAUSE AN UNFAVORABLE MATERIALS QUANTITY VARIANCE?
OH BOY! HELP!
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