costacctg13_sm_ch05

Helens glass as a result it also uses less o f the

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Unformatted text preview: ool, law firm (continuation of 5­28). 1. Indirect costs = $7,000 Total professional labor­hours = 200 hours (104 hours on Widnes Coal + 96 hours on St. Helen’s Glass) Indirect cost allocated per professional labor­hour (revised) = $7,000 ÷ 200 = $35 per hour 2. Direct costs: Direct professio nal labor, $70 × 104; $70 × 96 Research support labor Computer time Travel and allowances Telephones/faxes Photocopying Total direct costs Indirect costs allocated, $35 × 104; $35 × 96 Total costs to be billed 3. Widnes Coal St. Helen’s Glass Total $ 7,280 1,600 500 600 200 250 10,430 3,640 $14,070 $ 6,720 3,400 1,300 4,400 1,000 750 17,570 3,360 $20,930 $14,000 5,000 1,800 5,000 1,200 1,000 28,000 7,000 $35,000 Widnes Coal Problem 5­28 Problem 5­29 $18,200 14,070 St. Helen’s Glass $16,800 20,930 Total $35,000 35,000 The Problem 5­29 approach direct ly traces $14,000 of general support costs to the individua l jo bs. In Problem 5­28, these costs are allocated on the basis of direct prof...
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This note was uploaded on 10/11/2010 for the course ACCT 321 taught by Professor Cole during the Spring '10 term at University of Miami.

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