Question Details

[solution] » #2 Tiana Shar, the controller for Caesar Glassware Company, is in

Brief item decscription

Solution/tutorial download for the question described below


Item details:

,#2 ,Tiana Shar, the controller for Caesar Glassware Company, is in the process of analyzing the overhead costs for the month of November. She has gathered the following data for the month., , , , , , , , , , , , , , Labor, , , , , , , , , , , , Direct-labor hours:, , , , , , , , , , , , Job 57, , , , , , , ,3,500 , , , , Job 58, , , , , , , ,3,000 , , , , Job 59, , , , , , , ,2,000 , , , , Labor costs:, , , , , , , , , , , , Direct-labor wages, , , ,$, , , ,221,000 , , , , Indirect-labor wages, , , , , , , ,17,000 , , , , Supervisory salaries, , , , , , , ,7,000 , , , , Material, , , , , , , , , , , , Inventories, November 1:, , , , , , , , , , , , Raw material and supplies, , , ,$, , , ,10,500 , , , , Work in process (job 57), , , , , , , ,54,000 , , , , Finished goods, , , , , , , ,112,000 , , , , Purchases of raw material and supplies:, , , , , , , , , , , , Raw material, , , ,$, , , ,133,000 , , , ,Supplies (indirect material), , , , , , , ,15,000 , , , , Direct material and supplies requisitioned for production:, , , , , , , , , , , , Job 57, , , ,$, , , ,44,000 , , , , Job 58, , , , , , , ,37,500 , , , , Job 59, , , , , , , ,25,500 , , , , Supplies (indirect material), , , , , , , ,12,000 , , , , , , , , , , , , Total, , , ,$, , , ,119,000 , , , , , , , , , , , , Other, , , , , , , , , , , , Building occupancy costs (heat, light, depreciation, etc.), , , , , , , , , , , , Factory facilities, , , ,$, , , ,6,600 , , , , Sales offices, , , , , , , ,1,600 , , , , Administrative offices, , , , , , , ,1,000 , , , , , , , , , , , , Total, , , ,$, , , ,9,200 , , , , , , , , , , , , Production equipment costs:, , , , , , , , , , , , Power, , , ,$, , , ,$4,100 , , , , Repairs and maintenance, , , , , , , ,1,500 , , , , Depreciation, , , , , , , ,1,500 , , , , Other, , , , , , , ,1,000 , , , , , , , , , , , , Total, , , ,$, , , ,8,100 , , , , , , , , , , , , , ,The firm’s job-order costing system uses direct-labor hours (measured at practical capacity) as the cost driver for overhead application. In December of the preceding year, Shar had prepared the following budget for direct-labor and manufacturing-overhead costs for the current year. The plant is theoretically capable of operating at 150,000 direct-labor hours per year. However, Shar estimates that the practical capacity is 120,000 hours in a typical year., , , , , , ,Manufacturing Overhead, , , , , ,Direct-Labor Hours, , , ,Variable , , , ,Fixed , , , , , ,100,000, , , ,$325,000 , , , ,$216,000 , , , , , ,120,000, , , ,391,200 , , , ,216,000 , , , , , ,140,000, , , ,455,000 , , , ,216,000 , , , , , , , , , ,During November the following jobs were completed:, , , , , , , , , , , , , Job 57, , , ,10 oz. water glasses, , , , Job 58, , , , 5 oz. juice glasses, , , , , , ,Assist Shar by making the following calculations., , , ,Required:, ,Calculate the predetermined overhead rate for the current year. (Round your answer to 2 decimal places.)Calculate the total cost of Job 57. (Do not round your intermediate calculations. Round your final answer to the nearest dollar amount.), ,Compute the amount of manufacturing overhead applied to job 59 during November. (Do not round your intermediate calculations. Round your final answer to the nearest dollar amount.), ,What was the total amount of manufacturing overhead applied during November? (Do not round your intermediate calculations. Round your final answer to the nearest dollar amount.), ,Compute the actual manufacturing overhead incurred during November., ,Calculate the overapplied or underapplied overhead for November. (Do not round your intermediate calculations. Round your final answer to the nearest dollar amount.), , , , , , , , , , , , , , , , , ,#3,Clark and Shiffer LLP perform activities related to e-commerce consulting and information systems in Vancouver, British Columbia. The firm, which bills $140 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff.  The cost per hour for professional staff time is $50. Selected information follows., ,Billable hours to clients for the year totaled 6,000 consisting of: information systems services, 3,600; e-commerce consulting 2,400., ,Administrative cost of $381,760 was (and continues to be) allocated to both service based on billable hours. These costs consist of staff support, $207,000; in-house computing, $145,000; and miscellaneous office charges, $29,760., ,A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing an miscellaneous office charges varied directly with the number of computer and number of client transactions, respectively, A tabulation revealed the following data:, , ,E-Commerce Consulting, , , ,Information, Systems, Services, , , ,Total, , , , Number of clients, , , ,60, , , , , , , ,240, , , , , , , ,300 , , , , Number of computer hours, , , ,2,100, , , , , , , ,2,900, , , , , , , ,5,000 , , , , Number of client transactions, , , ,720, , , , , , , ,480, , , , , , , ,1,200 , , , , ,Required:, ,2. Assume that the firm uses traditional costs procedures, allocating total costs on the basis of billable hours.  Determine the profitability of the firm’s e-commerce and information systems activities, expressing you answer in both dollars and as a percentage of activity revenue. (Do not round intermediate calculations. Round “Profitability” to 2 decimal places.), ,3. Using activity-based costing, determine the profitability of the firm’s e-commerce and information systems activities, expressing your answer both in dollars and as a percentage of activity revenue. (Do not round intermediate calculations and round your final answers to 2 decimal places.), ,4. Stephen Shiffer, one of the firm’s partners, doesn’t care where his professionals spend their time because, as he notes, “many clients have come to expect both services and we need both to stay in business. Also, information systems and e-commerce professionals are paid the same hourly rate”. Should Shiffer’s attitude change?, , ,Based on what you find (which part is making more money and by how much) you will be able to answer this., , ,#4,Susquehanna Medical Center operates a general hospital in northeastern Pennsylvania. The medical center also rents space and beds to separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Susquehanna charges each separate entity for common services, such as patients’ meals and laundry, and for administrative services, such as billings and collections. Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. Susquehanna Medical Center charged the following costs to Pediatrics for the year ended June 30, 20x5:, , , , , , , ,Patient Days (variable), , , ,Bed Capacity (fixed), , , , Dietary, , , ,$, , , ,720,000, , , , , , , , , , , ,—, , , , , , , , Janitorial, , , , , , , ,—, , , , , , , ,$, , , ,84,000, , , , , , , , Laundry, , , , , , , ,360,000, , , , , , , , , , , ,—, , , , , , , , Laboratory, , , , , , , ,540,000, , , , , , , , , , , ,—, , , , , , , , Pharmacy, , , , , , , ,420,000, , , , , , , , , , , ,—, , , , , , , , Repairs and maintenance, , , , , , , ,—, , , , , , , , , , , ,36,000, , , , , , , , General and administrative, , , , , , , ,—, , , , , , , , , , , ,1,560,000, , , , , , , , Rent, , , , , , , ,—, , , , , , , , , , , ,1,800,000, , , , , , , , Billings and collections, , , , , , , ,360,000, , , , , , , , , , , ,—, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Total, , , ,$, , , ,2,400,000, , , , , , , ,$, , , ,3,480,000, , , , , , , , , , , , , , , , , , , , , , , , , , , , , During the year ended June 30, 20x5, Pediatrics charged each patient an average of $360 per day, had a capacity of 60 beds, and had revenue of $7.2 million for 365 days. In addition, Pediatrics directly had a capacity of 60 beds, and had revenue of $7.2 million for 365 days. In addition, Pediatrics directly employed personnel with the following annual salary costs per employee: supervising nurses, $30,000; nurses, $24,000; and aides, $10,800. Susquehanna Medical Center has the following minimum departmental personnel requirements, based on total annual budgeted patient days: , , , Annual Patient Days, , , ,Supervising Nurses, , , ,Nurses, , , ,Aides, , , , Up to 22,000, , , ,4, , , , , , , ,10, , , , , , , ,20, , , , , , , , 22,001 to 26,000, , , ,5, , , , , , , ,14, , , , , , , ,25, , , , , , , , 26,001 to 29,200, , , ,5, , , , , , , ,16, , , , , , , ,31, , , , , , , , Pediatrics always employs only the minimum number of required personnel. Salaries of supervising nurses, nurses, and aides are therefore fixed within ranges of annual patient days.,    Pediatrics operated at 100 percent capacity on 90 days during the year ended June 30, 20x5. Administrators estimate that on these 90 days, Pediatrics could have filled another 20 beds above capacity. Susquehanna Medical Center has an additional 20 beds available for rent for the year ending June 30, 20x6. Such additional rental would increase Pediatrics’ fixed charges based on bed capacity. (In the following requirements, ignore income taxes.),Required:, ,1. Calculate the minimum number of patient days required for Pediatrics to break even for the year ending June 30, 20x6, if the additional 20 beds are not rented. Patient demand is unknown, but assume that revenue per patient day, cost per patient day, cost per bed, and salary rates will remain the same as for the year ended June 30, 20x5., ,2. Assume that patient demand, revenue per patient day, cost per patient day, cost per bed, and salary rates for the year ending June 30, 20x6, remain the same as for the year ended June 30, 20x5. Prepare a schedule of Pediatrics’ increase in revenue and increase in costs for the year ending June 30, 20x6. Determine the net increase or decrease in Pediatrics’ earnings from the additional 20 beds if Pediatrics rents this extra capacity from Susquehanna Medical Center. (Do not round intermediate calculations. Round your final answer to nearest whole number. Enter an increase in earnings as a postive amount or a decrease in earnings as a negative amount.),

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Oct 21, 2020

PRICE: $2

Solution~00040195.zip (18.37 KB)

Buy this answer for only: $2

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now