costacctg13_sm_ch05

However seattle dominio n uses a higher proportion o

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Amount Billed to Total Client (6) = (4) ´ (5) (7) = (4) + (6) Client (1) SEATTLE DOMINION Wo lfson Brown Anderson TOKYO ENTERPRISES Wo lfson Brown Anderson $500 120 80 15 3 22 $7,500 360 1,760 30% 30 30 $2,250 108 528 $ 9,750 468 2,288 $12,506 $500 120 80 2 8 30 $1,000 960 2,400 30% 30 30 $300 288 720 $1,300 1,248 3,120 $5,668 2. Direct Professional Time Support Services Amount Rate Number Rate per Billed to per of Hours Total Hour Total Client Hour (2) (3) (5) (4) = (2) ´ (3) (6) = (3) ´ (5) (7) = (4) + (6) Client (1) SEATTLE DOMINION Wo lfson Brown Anderson TOKYO ENTERPRISES Wo lfson Brown Anderson $500 120 80 15 3 22 $7,500 360 1,760 $50 50 50 $ 750 150 1,100 $ 8,250 510 2,860 $11,620 $500 120 80 2 8 30 $1,000 960 2,400 $50 50 50 $ 100 400 1,500 $1,100 1,360 3,900 $6,360 Seattle Do minio n Tokyo Enterprises Requirement 1 $12,506 5,668 $18,174 Requirement 2 $11,620 6,360 $17,980 Both clients use 40 hours of professio nal labor time. However, Seattle Dominio n uses a higher proportion o f Wo lfson’s t ime (15 hours), which is more costly. This attracts the highest support­ services charge when allocated on the bas...
View Full Document

Ask a homework question - tutors are online