11. Paul\'s Auto Repair uses time and material pricing. The body shop, which ant
ID: 2535743 • Letter: 1
Question
11.
Paul's Auto Repair uses time and material pricing. The body shop, which anticipates 10,000 direct labor hours of activity, has the following data:
rev: 10_29_2012
The time charge per hour is (Do not round your intermediate calculations.):
Multiple Choice
$24.05.
$32.85.
$35.50.
$44.30.
None of these.
23.
Martina, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly). The company allocates Building Maintenance cost on the basis of square footage and allocates Building Maintenance first in step-down method. The square footage occupied by each department follows.
rev: 10_29_2012
Assuming use of the direct method, over how many square feet would the Building Maintenance cost be allocated (i.e., spread)?
Multiple Choice
56,000.
68,000.
87,000.
More information is needed to judge.
31,000.
Annual overhead costs: Material handling and storage $ 28,000 Other overhead costs 88,000 Annual cost of materials used 194,000 Labor rate per hour, including fringe benefits 21.25 Hourly charge to achieve profit margin 14.25Explanation / Answer
1) Solution: 44.30
Working:
=21.25 + 14.25 + 88,000/10,000
=44.30
2) Solution: 56,000
Working:
= 24,000 + 32,000 = 56,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.