Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 7, Problem 12P
A project consists of three tasks. Task A is scheduled to begin at the start of Week 1 and finish at the end of Week 3. Task B is scheduled to begin at the start of Week 1 and finish at the end of Week 2. Task C is scheduled to begin at the start of Week 2 and end at the end of Week 3. The budgeted cost for Task A is $22,000, for Task B is $17,000, and for Task C is $15,000. At the end of the second week, Task A is 65% complete, Task B is 95% complete, and Task C is 60% complete. What is the SPI for the project at the end of the second week?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
At the beginning of the period, the Fabricating Department budgeted direct labor of $149,600 and equipment depreciation of $47,000 for 6,800 hours of production. The department actually completed 8,800 hours of production.
Determine the budget for the department, assuming that it uses flexible budgeting.
A local engineering firm is bidding on a design project for a new client. The total budgeted direct-labor costs for the firm are $600,000. The total budgeted indirect costs are $800,000. It is estimated that there are 10,000 billable hours in total.
a. What is the budgeted direct-labor cost rate?
b. What is the budgeted indirect-cost rate assuming direct-labor cost is the allocation base?
c. What should be the engineering firm bid on the project if the direct labor hours are estimated at 300 hours?
The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: fabrication, $246,000; assembly, $144,000, and setup, $110,000. Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantities for each project by activity are as follows:
Fabrication
Assembly
Setup
Basic
2,000 dlh
8,000 dlh
5 setups
Deluxe
10,000 dlh
24,000 dlh
15 setups
Total activity-base usage
12,000 dlh
32,000 dlh
20 setups
Each product is budgeted for 2,500 units of production for the year.What is the activity-based factory overhead per unit for the Deluxe kayak?
a.$41.80
b.$158.20
c.$100.00
d.$154.54
Chapter 7 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 7 - What are the key steps in the monitoring and...Ch. 7 - What does it indicate when a superintendent has to...Ch. 7 - What is the best way to control labor costs? What...Ch. 7 - Why are equipment costs for company-owned...Ch. 7 - What is an internai change order and how is it...Ch. 7 - Why is it important to have a realistic budget for...Ch. 7 - What are some of the problems with using the CPI?Ch. 7 - Prob. 8DQCh. 7 - During the design phase, what are the steps for...Ch. 7 - Determine the estimated cost of the work performed...
Ch. 7 - Determine the estimated cost of the work performed...Ch. 7 - A project consists of three tasks. Task A is...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - The ACWP at the end of the second week for the...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - Determine the total estimated cost at completion...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - Prob. 18P
Additional Business Textbook Solutions
Find more solutions based on key concepts
Based on your answers to the above questions, should Lockwood invest in the machinery?
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
This year, Prewer Inc. received a 160,000 dividend on its investment consisting of 16 percent of the outstandin...
PRINCIPLES OF TAXATION F/BUS.+INVEST.
1. For Frank’s Funky Sounds, straight-line depreciation on the trucks is a
Learning Objective 1
a. variable cos...
Horngren's Accounting (12th Edition)
The amount that should be recorded by Company R for building under historical cost principle.
Financial Accounting (11th Edition)
Discussion Analysis A13-41 Discussion Questions 1. How do managers use the statement of cash flows? 2. Describ...
Managerial Accounting (5th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Forest Trails is preparing their budgeted financial statements for the coming period, and has accumulated the following data: Beginning of - period balances: Cash: $18,900 Accounts Receivable: $75, 600 Raw Materials Inventory: $22,400 Work in Process Inventory: $84,000 Finished Goods Inventory: $33, 600 Equipment (historical value): $672,000 Accumulated Depreciation: $403, 200 Accounts Payable: $37,800 Estimates for end-of-period balances: Accounts Receivable: $94, 500 Raw Materials Inventory: $14,000 Work in Process Inventory: $70,000 Finished Goods Inventory: $ 40,600 Accumulated Depreciation: $414,400 Accounts Payable: $25,200 Budgeted activity levels for the period: Sales: 3,125 units, at an average sales price of $112 per unit Purchases of Direct Materials: $62, 720 Direct Labor Wages: $ 105,000 Manufacturing Overhead: $35,000 Selling and Administrative Expenses: $58,800 All sales are on account. Only raw materials are purchased on account. The company has no debt aside from…arrow_forwardForest Trails is preparing their budgeted financial statements for the coming period, and has accumulated the following data: Beginning-of-period balances: Cash: $18,900 Accounts Receivable: $75,600 Raw Materials Inventory: $22,400 Work in Process Inventory: $84,000 Finished Goods Inventory: $33,600 Equipment (historical value): $672,000 Accumulated Depreciation: $403,200 Accounts Payable: $37,800 Estimates for end-of-period balances: Accounts Receivable: $94,500 Raw Materials Inventory: $14,000 Work in Process Inventory: $70,000 Finished Goods Inventory: $4 0,600 Accumulated Depreciation: $414,400 Accounts Payable: $25,200 Budgeted activity levels for the period: Sales: 3,12 5 units, at an average sales price of $112 per unit Purchases of Direct Materials: $62,720 Direct Labor Wages: $105,000 Manufacturing Overhead: $35,000 Selling and Administrative Expenses: $58,800 All sales are on account. Only raw materials are purchased on account. The company has no debt aside from current…arrow_forwardForest Trails is preparing their budgeted financial statements for the coming period, and has accumulated the following data: Beginning-of-period balances: Cash: $13,500 Accounts Receivable: $54,000 Raw Materials Inventory: $16,000 Work in Process Inventory: $60,000 Finished Goods Inventory: $24,000 Equipment (historical value): $480,000 Accumulated Depreciation: $288,000 Accounts Payable: $27,000 Estimates for end-of-period balances: Accounts Receivable: $67,500 Raw Materials Inventory: $10,000 Work in Process Inventory: $50,000 Finished Goods Inventory: $29,000 Accumulated Depreciation: $296,000 Accounts Payable: $18,000 Budgeted activity levels for the period: Sales: 3,125 units, at an average sales price of $80/unit Purchases of Direct Materials: $44,800 Direct Labor Wages: $75,000 Manufacturing Overhead: $25,000 Selling and Administrative Expenses: $42,000 All sales are on account. Only raw materials are purchased on account. The company has no debt aside from current liabilities.…arrow_forward
- 13) Dalrymple Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $68,750. The budgeted number of nozzles to be inserted is 11,000. What is the budgeted indirect cost allocation rate for this activity? A) $0.16 B) $0.32 C) $1.16 D) $6.25arrow_forwardClarks Company's master budget includes $360,000 for equipment depreciation. The master budget was prepared for an annual volume of 120,000 chargeable hours. This volume is expected to occur uniformly throughout the year. During September Clark performed 9,000 chargeable hours and recorded $28,000 of depreciation. Determine the flexible budget amount for equipment depreciation in September?arrow_forwardHarper Manufacturing determines allocation rates as part of its annual budgeting process, which takes place 1 month before the beginning of the year. The company reports the following manufacturing overhead information as part of its budgeting process: Budgeted MOH Budgeted production (units) Budgeted direct labor hours Cost Pool Cost Pool 1 Cost Pool 2 Total Total Cost $ 6,000,000 $ 9,000,000 $ 15,000,000 $ 15,000,000 25,000,000 40,000 Allocation Base Unit Direct labor hour Question a. Assuming that Harper uses a traditional job costing system with a single allocation base (units), what is the predetermined overhead rate for the upcoming year? Note: Round your answer to 2 decimals. b. Assume Job 189 comprises 36 units and 2 direct labor hours. If Harper uses a traditional job costing system with a single allocation base (units), what is the total manufacturing overhead allocated to the job? Note: Round your answer to 2 decimals. c1. Now assume that Harper uses a two-stage job costing…arrow_forward
- The budgeted conversion costs for a just-in-time cell are $202,400 for 4,000 production hours. Each unit produced by the cell requires 15 minutes of cell process time. During the month, 1,500 units are manufactured in the cell. The estimated materials cost is $55 per unit.What would be the journal entry to record the conversion costs applied to the 1,500 units of production? a. Finished Goods Inventory18,975 Conversion Costs18,975 b. Raw and In Process Inventory75,900 Conversion Costs75,900 c. Finished Goods Inventory75,900 Conversion Costs75,900 d. Raw and In Process Inventory18,975 Conversion Costs18,975arrow_forwardThe total factory overhead for Big Light Company is budgeted for the year at $1,204,000. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 11,800 units. Each night light requires 2 hours of direct labor. Desk lamps are budgeted for 12,200 units. Each desk lamp requires 3 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. $ per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights $ Desk lamps $ per unit per unitarrow_forwardThe cost formula for the maintenance department of Rambo Limited is $19,200 per month plus $7.50 per machine hour used by the production department. Required: a. Calculate the maintenance cost that would be budgeted for a month in which 6,600 machine hours are planned to be used. b. Prepare an appropriate performance report for the maintenance department assuming that 7,100 machine hours would be used in the month of May and that the total actual maintenance cost incurred in May was $68,950. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the maintenance cost that would be budgeted for a month in which 6,600 machine hours are planned to be used. Maintenance costarrow_forward
- The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year. Available capacity 8,000,000 pages Budgeted usage: Software Development 1,600,000 pages Training 3,000,000 pages Management 2,400,000 pages Cost equation $280,000 + $0.03 per page If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Training Department, assuming the Training Department actually made 2,770,000 copies during the year? Multiple Choice $193,900. $203,100. $180,050. $190,079.arrow_forwardJefferson Company expects to incur $572,760 in manufacturing overhead costs during the current year. Other budget information follows: Direct labor hours Machine hours Department A 16,650 8,880 Required: a. Use direct labor hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead cost for each department. b. Use machine hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead cost for each department. c. Assume that Department A manufactured a product that required 160 direct labor hours and 85 machine hours. If overhead is allocated based on direct labor hours, how much overhead would be allocated to this product? d. Assume that Department A manufactured a product that required 160 direct labor hours and 85 machine hours. If overhead is allocated based on machine hours, how much overhead would be allocated to this product? Req A and B Req C and D Department B Department C 5,550 22, 200 11,100 13,320…arrow_forwardThe Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year. Available capacity 8,100,000 pages Budgeted usage: Software Development 1,700,000 pages Training 3,100,000 pages Management 2,500,000 pages Cost equation $285,000 + $0.02 per page If DCC uses a dual-rate for allocating its costs based on usage, how much cost will be allocated to the Software Development Department? Multiple Choice $116,740. $100,370. $45,630. $162,000.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY