7 john wants to identify the total cost for computing the corporate tax return he pr 4302597

 

7) John wants to identify the total cost for computing the corporate tax return he prepared for his client. Labour is the only direct cost at $50 per hour. Indirect costs are $60 per labour hour. What is the total direct cost, indirect cost, and job cost, respectively, if 15 hours are spent preparing the tax return?

A) $700, $850, $1,550

B) $750, $800, $1,550

C) $750, $900, $1,650

D) $800, $640, $1,440

E) $800, $900, $1,440

 

8) Larry's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales of a given type of appliance and sales support. For refrigerators in July, the following costs were recorded:

 

Professional sales staff commissions $84,000

Amortization on office space4,000

Selling supplies 6,400

Office staff expenses  24,800

Customer relations 8,600

Training expenses 6,000

Utilities  1,400

 

Required:

a.Which of the costs will be subject to direct cost tracing?

b.What is the total cost for refrigerators?

c.What is the total cost of the Sales Support for refrigerators?

9) General Hospital uses a job-costing system for all patients. In March the Critical Care and Special Care facilities had cost allocation bases of 4,000 nursing days and 3,000 nursing days, respectively. The nursing care charges for each department for the month were $2,106,000 and $1,500,000, respectively. The General Care area had costs of $2,700,000 and 7,500 nursing days for the month.

 

Patient Jim Hansen spent 5 days in Critical Care, 4 days in Special Care and 21 days in General Care during March.

 

Required:

a.Determine the cost allocation rate for each department.

b.What are the total charges to Mr. Hansen if he was in the facility the entire month of March?