# Ch 4 Cost Accounting

Topics: Cost, Cost of goods sold, Costs Pages: 4 (816 words) Published: September 28, 2011
Ch4 #32, 34, 41
ACC307
#32
1) Professional Labor Hours
Indirect Costs
Direct Costs
Legal Support

Indirect-Cost
Pool

Cost-Allocation
Base

Cost Object:
Direct Labor

Job for clients

Direct Costs

2) 2008 budgeted direct-cost rate per hour of professional labor \$104,000 / 1600 hours = \$65 per professional labor hour

3) 2008 budgeted indirect-cost rate per hour of professional labor \$2,200,000 / (25 x 1600 hours) = \$55 per professional labor hour

4) a. Litigation work for Richardson, Inc., which requires 100 budgeted hours of professional labor. (Prepare cost estimate) Direct costs
Direct labor cost: \$65 x 100 = \$6,500
Indirect costs
Legal support cost: \$55 x 100 = \$5,500
Total Job Cost = \$12,000

b. Labor contract work for Punch, Inc., which requires 150 budgeted hours of professional labor. (Prepare cost estimate) Direct costs
Direct labor cost: \$65 x 150 = \$9,750
Indirect costs
Legal support cost: \$55 x 150 = \$8,250
Total Job Cost = \$18,000

#34
1) Compute the budgeted manufacturing overhead rate for 2009. Predetermined Overhead Rate = \$4,800,000 / 80,000 = \$60 per Machine Hour

2) Compute the under- or overallocated manufacturing overhead of Zaf radiator in 2009. Dispose of this amount using a. Applied Manufacturing Overhead = \$60 x 75,000 = \$4,500,000 Actual Manufacturing Overhead = \$4,900,000

\$4,900,000 - \$4,500,000 = \$400,000 Under-allocated in manufacturing overhead

Cost of Goods Sold \$400,000
The COGS account after the write-off equals to \$8,400,000, the balance before the write-off of \$800,000 plus the underallocated manufacturing onverhead amount of \$400,000.

b. Proration based on ending balance (before proration) in WIP Control, FG Control, and COGS Account| Account...