costacctg13_sm_ch05

Mdmi reduces the likelihood ofwigan associates

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Unformatted text preview: essio nal labor­hours. The averaging assumption implicit in the Problem 5­28 approach appears incorrect—for example, the St. Helen’s Glass jo b has travel costs over seven t imes higher than the Widnes Coa l case despite having lower direct professio nal labor­hours. 5­23 5­30 (30 min.) Job costing with multiple direct­cost categories, multiple indirect­cost pools, law firm (continuation of 5­28 and 5­29). 1. Widnes Coal Direct costs: Partner professio nal labor, $100 × 24; $100 × 56 $ 2,400 Associate professio nal labor, $50 × 80; $50 × 40 4,000 Research support labor 1,600 Computer time 500 Travel and allowances 600 Telephones/faxes 200 Photocopying 250 Total direct costs 9,550 Indirect costs allocated: Indirect costs for partners, $57.50 × 24; $57.50 × 56 1,380 Indirect costs for associates, $20 × 80; $20 × 40 1,600 Total indirect costs 2,980 Total costs to be billed $12,530 Widnes Comparison Coal Single direct cost/ Single indirect cost pool $18,200 Mult iple direct costs/ Single indirect cost pool $14,070 Mult iple direct costs/ Mult iple indirect cost pools $12,530 St. Helen’s Glass Total $ 5,600 2,000 3,400 1,300 4,400 1,000 750 18,450 $ 8...
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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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