Suppose a job required parts costing 200 and

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b. Suppose a job required parts costing $200 and technician time costing $100. What would be the total cost of the job? $500,000/800,000=0.625 $200+$100+ ($100*0.625)= $362.5 2. Cost of Jobs Red Company is a steel fabricator, and job 325 consists of producing 500 steel supports for Green Construction Company. Overhead is applied on the basis of direct labor hours, using a predetermined overhead rate of $25 per hour. Direct costs associated with Job 325 are: direct materials, $10,000; direct labor, 250 hours at $16 per hour. Required Calculate the cost of Job 325. Job #325 Direct Labor Cost: 250* $16=$4,000 Overhead: 250*$25=6,250 Predetermined overhead rate= 6250/4000=1.56 Cost of Job #325 $10,000+ $4000+$6250=$20,250
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3. Service Company Use of Predetermined Overhead Rate Yellow and Purple Legal Services employs five full-time attorneys and nine paraprofessionals. Budgeted salaries are $100,000 for each attorney and $50,000 for each paraprofessional. Budgeted indirect costs (e.g., rent, secretarial support, copying, etc.) are $210,000. The company traces the cost of attorney and paraprofessional time to each client and uses the total to assign indirect costs. Required What amount of indirect costs would be assigned if services to a client required $25,000 of attorney cost and $20,000 of paraprofessional cost? $25,000+20,000=45,000 $45,000/150,000=30% $210,000*30%=$63,000 4. Job Costing (Service) Orange & Associates is an accounting firm that provides audit, tax, and accounting services to medium-size retail companies. It employs 50 professionals (10 partners and 40 associates) who work directly with clients. The average expected total compensation per professional for the year is
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