Unit variable cost | 125 | =87500/700 | |
500 clients | 800 clients | 900 clients | |
Total costs | |||
Fixed costs | 159000 | 159000 | 159000 |
Variable costs | 62500 | 100000 | 112500 |
Total costs | 221500 | 259000 | 271500 |
Cost per client | |||
Fixed cost | 318.00 | 198.75 | 176.67 |
Variable cost | 125.00 | 125.00 | 125.00 |
Total cost per client | 443.00 | 323.75 | 301.67 |
Formulas used: | |||
Total costs | |||
Variable costs | =500*125 | =800*125 | =900*125 |
Cost per client | |||
Fixed cost | =159000/500 | =159000/800 | =159000/900 |
EA6. LO 2.2 Carr Company provides human resource consulting services to small- and medium-sized companies. Last...
Anwser all questions and Show work 1 Carr Company provides human resource consulting services to small and medium-sized companies. Last year, Carr provided services to 700 clients. Total fixed costs were $159,000 with total variable costs of $87,500. Based on this information, complete this chart: (10 points) Solution 500 clients 800 clients 900 clients Total costs Fixed costs Variable costs Total costs Cost per client Fixed cost Variable cost Total cost per client $ 159,000 62.500 22500 $159.000 100000 254.000...
COVID 19, an accounting firm, provides consulting and tax planning services. For many years, the firm's total administrative cost (currently $270,000) has been allocated to services on this basis of billable hours to clients. A recent analysis found that 55% of the firm's billable hours to clients resulted from tax planning services, while 45% resulted from consulting services. The firm, contemplating a change to activity-based costing, has identified three components of administrative cost, as follows: Staff Support $200,000 In-house computing...
Lim & Joyce Consulting, a Perth (Australia) based firm, provides consulting services related to project management and analytical support. It operates in a very tight local labour market and is having difficulty finding quality staff. The firm bills $350 per hour for services performed. The labour cost per hour paid by Lim & Joyce Consulting for professional staff time is $135. Additional information is provided as follows: • Billable hours to clients for the year ended totalled 10 000, consisting...
To su marks Lucky Designers provides landscape consulting services to clients that range from small businesses to large corporations. The budgeted rate charged to customers for consulting per hour $100) The budgeted overhead for customer support costs per hour is $45 and the budgeted other direct-cost pool rate is $25 per hour. The budgeted hourly rates charged to jobs are $30 for the architect and $15 for the assistants. Lucky Designers provides landscape consulting services to clients that range from...
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...
Optimum Health Inc. provides diet, fitness, and nutrition services to clients who want a healthier lifestyle. The company customizes a program for each client based on their individual goals that includes diet recommendations (prepackaged food and supplements), nutrition counseling, and guided fitness (personal training). The company uses a modified job order cost system that keeps track of the cost of the food, vitamins, and nutritional supplements the company provides to each client, as well as the amount of time nutrition...
please do B 1. Mike K. provides consulting and tax preparation services to clients. Mike charges a fee of $100 per hour for each service and can devote a maximum of 4,000 hours annually to his clients. He reported the following revenues and expenses for 2014: $400,000 Revenue Expenses all overhead): Secretarial support Supplies Computer costs Net income $84,000 72,000 48.000 $196,000 Being an accountant, Mike kept good records of the following data for 2014: Revenues Direct labour hours Tax...
please help 1. Mike K. provides consulting and tax preparation services to clients. Mike charges a fee of $100 per hour for each service and can devote a maximum of 4,000 hours annually to his clients. He reported the following revenues and expenses for 2014: $400,000 Revenue Expenses (all overhead): Secretarial support Supplies Computer costs Net income $84,000 72,000 48.000 $196,000 Being an accountant, Mike kept good records of the following data for 2014: Revenues Direct labour hours Tax Preparation...
please do C and D 1. Mike K. provides consulting and tax preparation services to clients. Mike charges a fee of $100 per hour for each service and can devote a maximum of 4,000 hours annually to his clients. He reported the following revenues and expenses for 2014: $400,000 Revenue Expenses (all overhead): Secretarial support Supplies Computer costs Net income $84,000 72,000 48.000 $196,000 Being an accountant, Mike kept good records of the following data for 2014: Revenues Direct labour...
3 Optimum Health Inc. provides diet, fitness, and nutrition services to clients who want a healthier lifestyle. The company customizes a program for each client based on their individual goals that includes diet recommendations (prepackaged food and supplements), nutrition counseling, and guided fitness (personal training). The company uses a modified job order cost system that keeps track of the cost of the food, vitamins, and nutritional supplements the company provides to each client, as well as the amount of time...