2. Brink Financial Advisors provides accounting and finance assistance to custom
ID: 2333935 • Letter: 2
Question
2. Brink Financial Advisors provides accounting and finance assistance to customers in the retail business. Brink has four professionals on staff, plus an office with six clerical staff. Total compensation, including benefits, for the professional staff runs up to
$820,000
per year, and normal billable hours are about
3,300
billable hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are
280,000.
Brink
allocates office and administrative costs to clients monthly, using a predetermined overhead allocation rate based on billable hours. During July, Brink's professionals spent
50
hours on their client, Waseca Sales. Brink adds a
30%
markup on its costs to calculate the amount billed to the customer. How much gross profit did Brink earn from Waseca Sales inJuly?
Happy Clicks, Inc. uses a predetermined overhead allocation rate of $5.75 per machine hour. Actual overhead costs incurred during the year are as follows: Indirect materials Indirect labor Plant depreciation Plant utilities and insurance Other plant overhead costs Total machine hours used during year $5,100 $3,400 $46 $9,500 $11,700 7,600 hours What is the amount of manufacturing overhead cost allocated to Work- in - Process Inventory during the year? OA. $43,700 O B. $8,500 O C. $28,846 O D. $37,346Explanation / Answer
1) Manufacturing overhead cost allocted to work in process = Overhead rate*Actual hours
= 5.75*7600
Manufacturing overhead cost allocated to work in process = $43700
So answer is a) $43700
Note : Please post next question is clear image because cant understand second question
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