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Ryan & Marks,Design Consultants Has the Following Budget for the Year

question 57

Essay

Ryan & Marks,Design Consultants has the following budget for the year:
The firm uses direct labor as the cost driver to apply overhead to clients.During January,the firm worked for many clients;data for two of them follow:
$\begin{array} { | l | r | } \hline \begin{array} { l } \text { Direct labor (for protessional hours charged to } \\\text { clients) }\end{array} & \$ 202,000 \\\hline \text { Overhead } & \\\hline \text { Indirect materials } & 10,000 \\\hline \text { Indirect labor } & 150,000 \\\hline \text { Depreciation - Building } & 50,000 \\\hline \text { Depreciation - Furniture } & 5,000 \\\hline \text { Utilities } & 12,000 \\\hline \text { Insurance } & 4,800 \\\hline \text { Property taxes } & 5,200 \\\hline \text { Other expenses } & 3,380 \\\hline \text { Total } & \$ 240,380 \\\hline\end{array}$
The firm uses direct labor as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow:
$Ryan & Marks,Design Consultants has the following budget for the year: The firm uses direct labor as the cost driver to apply overhead to clients.During January,the firm worked for many clients;data for two of them follow: \begin{array} { | l | r | } \hline \begin{array} { l } \text { Direct labor (for protessional hours charged to } \\ \text { clients) } \end{array} & \$ 202,000 \\ \hline \text { Overhead } & \\ \hline \text { Indirect materials } & 10,000 \\ \hline \text { Indirect labor } & 150,000 \\ \hline \text { Depreciation - Building } & 50,000 \\ \hline \text { Depreciation - Furniture } & 5,000 \\ \hline \text { Utilities } & 12,000 \\ \hline \text { Insurance } & 4,800 \\ \hline \text { Property taxes } & 5,200 \\ \hline \text { Other expenses } & 3,380 \\ \hline \text { Total } & \$ 240,380 \\ \hline \end{array} The firm uses direct labor as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow: Required: (1)Compute the Ryan & Marks budgeted overhead rate.Explain how this is used.(2)Compute the amount of overhead to be charged to the Henderson and Fisher accounts using the predetermined overhead rate calculated in requirement (1).(3)Compute the separate job cost for the Henderson and Fisher accounts.$
Required:
(1)Compute the Ryan & Marks budgeted overhead rate.Explain how this is used.(2)Compute the amount of overhead to be charged to the Henderson and Fisher accounts using the predetermined overhead rate calculated in requirement (1).(3)Compute the separate job cost for the Henderson and Fisher accounts.

Definitions:

Money Supply

The total amount of money available in an economy at a specific time, including physical currency and demand deposits.

Investment Curve

A graphical representation in economics showing the relationship between the rate of investment and factors such as interest rates, expected returns, or other economic variables.

Interest Rate

It's the percentage at which interest is paid by borrowers for the use of money that they borrow from lenders.

GDP

A synonym for Gross Domestic Product, it is the monetary measure of all final goods and services produced within a country's borders in a specific time period.