Question :
31) Sara employs 25 professional cleaners. Budgeted costs total $900,000 : 1186266
31) Sara employs 25 professional cleaners. Budgeted costs total $900,000 of which $525,000 are direct costs. Actual indirect costs were $396,900. Budgeted professional labour hours are 500,000 and actual hours were 525,000. What is the budgeted direct cost assignment rate?
A) $1.80 per hour
B) $1.7857 per hour
C) $0.75 per hour
D) $1.05 per hour
E) $1.00 per hour
32) The difference between actual costing and normal costing is
A) normal costing uses actual direct cost rates.
B) actual costing uses actual quantities of direct cost inputs.
C) normal costing uses budgeted quantities of actual direct cost inputs and budgeted indirect cost rates.
D) actual costing uses actual quantities of cost allocation bases.
E) normal costing uses budgeted indirect cost rates.
Use the information below to answer the following question(s).
Capable Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 892, which was recently completed. Direct materials used cost $6,300, the budgeted direct materials were $5,900. There were 180 direct labour hours worked on this job at a direct labour wage rate of $20 per hour; the budgeted direct labour wage rate was $21 per hour. There were 75 machine hours used on this job. The budgeted and actual indirect cost allocation rates are $32 and $29 per machine hour used, respectively.
33) What is the total manufacturing cost of Job 892 using normal costing?
A) $9,900
B) $12,300
C) $12,080
D) $12,255
E) $12,075
34) What is the total manufacturing cost of Job 892 using budget costing?
A) $9,900
B) $12,300
C) $12,080
D) $12,255
E) $12,075
35) What is the total manufacturing cost of Job 892 using actual costing?
A) $9,900
B) $12,300
C) $12,080
D) $12,255
E) $12,075
Use the information below to answer the following question(s).
World Engines Ltd. manufactures custom engines for use in the lawn and garden equipment industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 787 are as follows:
Direct materials used
$3,500
Direct labour hours worked
300
Machine hours used
400
Direct labour rate per hour
$16
Predetermined overhead rate based on machine hours
$18
Budgeted direct labour rate per hour
$20
Budgeted direct labour hours
310
Budgeted machine hours
370
Overhead rate based on actual indirect costs and actual machine hours
$15
Direct materials budgeted
$3,900
36) What is the total manufacturing cost of Job 787 using normal costing?
A) $17,100
B) $14,960
C) $12,800
D) $15,500
E) $14,300
37) What is the total manufacturing cost of Job 787 using budget costing?
A) $17,100
B) $14,960
C) $12,800
D) $15,500
E) $14,300
38) What is the total manufacturing cost of Job 787 using actual costing?
A) $17,100
B) $14,960
C) $12,800
D) $15,500
E) $14,300
39) Beacon Company does residential real estate appraisals. There are 40 professionals on its staff. Each professional is allotted the following number of hours per year:
Budgeted billable time for clients 1,800 hours
Budgeted vacation time 180 hours
Budgeted professional development 100 hours
Budgeted nonbillable time due to lack of demand 0 hours
Budgeted sick leave 120 hours
The company receives more jobs than it can handle and therefore rejects most out of town work. The budgeted salary for each professional is $44,000 per year with fringe benefits of $11,000.
During the previous year, the actual salaries were $46,500, plus fringe benefits of $11,500.
Required:
a.What was the total budgeted direct cost rate if the company believes that clients should be charged directly for its employees’ salaries and benefits?
b.What was the budgeted direct cost rate if the company wants to charge clients for employee vacation, sick leave, and professional development as an indirect cost?
