Records at Hal’s Accounting Services show the following costs
for year 1.
Direct materials and supplies | $ | 43,000 | |
Employee costs | 2,900,000 | ||
Total overhead | 1,260,000 | ||
Production was 35,000 billable hours. Fixed overhead was $710,000.
Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 15 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent.
Required:
a. Year 2 production is expected to be 28,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2?
|
b. Determine the total costs per billable hour for
year 1 and year 2. (Do not round intermediate calculations. Round
your answers to 2 decimal places.)
|
a) | ||
Direct materials and supplies | $ 37,840 | |
(43000/35000*28000)+10% | ||
Employee Cost | $ 26,68,000 | |
(2900000/35000*28000)+15% | ||
Variable Overhead | $ 4,40,000 | |
($1260000-710000)/35000*28000 | ||
Fixed Overhead | $ 7,45,500 | |
($710000+5%) | ||
Total Cost | $ 38,91,340 | |
b) | Cost per Billable Hour | |
Year 1 = (43000+2900000+1260000)/35000 | $ 120.09 | |
Year 2 = (3891340)/28000 hours | $ 138.98 | |
Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies...
Records at Hal’s Accounting Services show the following costs for year 1: Direct materials and supplies $ 49,000 Employee costs 2,900,000 Total overhead 1,280,000 Production was 20,000 billable hours. Fixed overhead was $710,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 15 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected...
Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies $ 50,000 Employee costs 2,900,000 Total overhead 1,340,000 Production was 35,000 billable hours. Fixed overhead was $790,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 15 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected...
Records at Hal’s Accounting Services show the following costs
for year 1.
Direct materials and supplies
$
42,000
Employee costs
2,500,000
Total overhead
1,280,000
Production was 35,000 billable hours. Fixed overhead was
$780,000.
Assuming no change in billable hours in year 2, direct materials
and supplies costs are expected to increase by 10 percent. Direct
labor costs are expected to increase by 15 percent. Variable
overhead per billable hour is expected to remain the same, but
fixed overhead is expected...
Please show work! Records at Hal’s Accounting Services show the following costs for year 1: Direct materials and supplies $ 47,000 Employee costs 2,900,000 Total overhead 1,290,000 Production was 35,000 billable hours. Fixed overhead was $780,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 15 percent. Variable overhead per billable hour is expected to remain the same, but fixed...
Exercise 5-31 Methods of Estimating Costs: Account Analysis (LO 5-3) Records at Hal's Accounting Services show the following costs for year 1: S Direct materials and supplies Employee costs Total Overhead 47,000 2,600,000 1,320,000 Production was 50,000 billable hours. Fixed overhead was $730,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 15 percent. Variable overhead per billable hour is...
The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials $ 300,000 Direct labor 261,000 Variable overhead 236,000 Production was 150,000 units. Fixed manufacturing overhead was $864,000. For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes; direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Variable manufacturing overhead per unit is expected to remain the same....
The accounting records for Miller Fixtures report the following production costs for the past year: Direct Materials $ 650,000 Direct Labor 576,000 Variable Overhead 466,000 Production was 287,000 units. Fixed manufacturing overhead was $768,000. For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes; direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Variable manufacturing overhead per unit is expected to remain the same....
The accounting records for Portland Products report the following manufacturing costs for the pest year. Direct materials $390,000 Direct labor 265,000 Variable overhead 236,000 Production was 190.000 units. Fixed manufacturing overhead was $724,000. For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes; direct labor by 4 percent, and fixed manufacturing overhead by 10 percent. Veriable manufacturing overhead per unit is expected to remain the same. Required:...
The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials Direct labor Variable overhead $ 380,000 262,000 230,000 Production was 170,000 units. Fixed manufacturing overhead was $810,000. For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes, direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Variable manufacturing overhead per unit is expected to remain the same....
The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials $ 340,000 Direct labor 261,000 Variable overhead 230,000 Production was 150,000 units. Fixed manufacturing overhead was $820,000. For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes; direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Variable manufacturing overhead per unit is expected to remain the same....