Question

A local financial consulting firm employs 20 full-time staff. The estimated compensation per employee is $50838 for 2049 hours. All direct labour costs are charged to clients. Any other costs are included in a single indirect-cost pool, allocated according to labour-hours.

If the total cost of a job that will take 23 hours is $2447 using a job order cost system, what is the budgeted indirect costs for the coming year?

Select one:

a. $1876

b. $3343156

c. $3997143

d. $104167062

Data regarding Lager Ltd.’s production for the year is given below:

Per unit information:

	Direct labour	$13
	Direct material	9
	Applied manufacturing overhead	8
Unit production (budget)		31184
Unit production (actual)		23971
Actual overhead costs incurred		$132674

Lager Ltd.’s manufacturing overhead for the year was:

Select one:

a. Under-applied by $59094

b. Under-applied by $116798

c. Over-applied by $116798

d. Over-applied by $59094

Answer 1

Please provide rating...

Answer 1
	Total cost =		2447
	Direct cost per hr =		24.81
	=50838/2049
	Direct cost of the job		571
	=24.81*23
	Indirect cost =		1876
	=2447-571
	Correct answer is option a. > 1876
Answer 2
	Direct labour		$13
	Direct material		9
	Applied manufacturing overhead		8
	Unit production (budget)		31184
	Unit production (actual)		23971
	Actual overhead costs incurred		$132,674
	Applied overhead =		191768
	=23971*8
	Actual overhead cost =		$132,674
	Over applied - overhead		$59,094
	=191768-132674
	Correct answer is option d.		Overapplied by 59094