Burkhart-Problems9-6and9-9

Burkhart-Problems9-6and9-9 - Problems 9-6 and 9-9 Brittany...

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Brittany Burkhart single direct cost category (professional labor) Overhead costs are included in a single indirect cost pool (professional support) allocated to jobs using professional labor hours as allocation base Shank Products-50 hours of design work for new addition Sayers Markets-plans for a new store that took 20 hours to draw 2 partners-150,000 a year 4 associates-60000 a year each professional has 1500 billable hours per year Professional support is 590,000 350,000 to design support 240,000 to staff support Shank-30 hrs of partner time and 20 hours of associate time Sayers-5 hours partner time and 15 hours associate time 1. Prepare job cost sheets for Shank and Sayers using a simplified costing system with one direct and one ind Average Professional Wage Rate=Professional Salaries/Billable Hours (2x150,000)+(4x60,000)/6x1500 540,000/9000=60 per hour Indirect Cost Rate Indirect cost rate=total indirect cost/professional labor hours 590000/9000=66 per hour Prepare the cost sheets:
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Burkhart-Problems9-6and9-9 - Problems 9-6 and 9-9 Brittany...

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