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notsponge [240]
1 year ago
15

McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial

appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows:Debbie Tara Annual Salary $ 150,000 $ 81,000 Billable Hours 2,000 1,800 The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for Debbie and Tara’s services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 20 percent markup.Required:(1) Compute the predetermined overhead rate.(2) Compute the hourly billing rate for Debbie and Tara. (Do not round your intermediate calculations.)
Business
1 answer:
melisa1 [442]1 year ago
3 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The company expects to incur total overhead costs of $378,210.

Applies overhead based on annual salary costs.

Debbie:

Annual Salary= 150,000

Billable hours= 2000

Cost per hur= 150000/2000= $75

Tara:

Annual Salary: 81000

Billable hours= 1800

Cost per hour= $45

1) Predetermine overhead rate= Estimated total manufacturing  overhead cost/ estimated total amount of the allocation base

Predetermine overhead rate= 378210/ (150000+81000)= 1.637

2) Hourly billing rate= (cost per hour + overhead rate) + 20% mark up

Hourly billing rate Debbie= (75 + 1.637)*1.2= $91.96

Hourly billing rate Tara= (45 + 1.637)*1.2= $55.96

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g Mason Company paid its annual property taxes of $240,000 on February 15, 20X9. Mason also anticipates that its annual repairs
scZoUnD [109]

Answer:

$360,000

Explanation:

The total cost would be estimated as the expense anticipated plus the property taxes paid previously.

Now

Total Cost = $240,000 Property Taxes paid      +     $1,200,000 Property repairs anticipated

= $1,440,000

Now we will distribute the annual cost over the four quarters which mean we will divide the total annual cost by 4.

Quarterly Expenses = $1,440,000 / 4     = <u>$360,000</u>

4 0
1 year ago
In order to sound businesslike, many writers mistakenly use stale expressions, thinking they sound more impressive. Which of the
Taya2010 [7]

Answer:

The correct answers are letters "D" and "E": Separately; At your request.

Explanation:

Business writing must be <em>clear, concise, </em>and <em>objective</em>. Most business messages are addressed to top managers who do not have the time to be asking for grammar clarifications in reports. Thus, <em>hidden verbs, redundancy, wordy and stale expressions </em>or <em>exuberance</em> must be avoided.

Fresh, vigorous expressions include "<em>Separately</em>", "<em>About</em>", "<em>Enclosed is</em>", "<em>At your request</em>", "<em>Please</em>" or "<em>Thank you</em>".

7 0
1 year ago
Westerlands and Crownlands are two countries that trade with each other and no other countries. Assume that Westerlands’ currenc
Alex73 [517]

Answer:eat some nice food

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7 0
2 years ago
Jason purchased ABC stock at $40 per share and DEF stock at $35 per share on the same day in 2015. Exactly 6 months later, the A
Pachacha [2.7K]

Answer:

C) ABC 5% and DEF 5.7%

Explanation:

Data provided in the question:

Purchasing Cost of Stock ABC purchased = $40 per share

Purchasing Cost of Stock DEF purchased = $35 per share

Time = 6 months

Selling price of share of ABC = $42 per share

Selling price of DEF share = $36

Dividend paid to the DEF = $0.5 each quarter i.e $0.5 twice in 6 months

Thus,

Total dividend paid to DEF = $0.5 × 2

= $1

Now,

For ABC

Total return = Selling price - Purchasing Cost

= $42 - $40

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $40 ] × 100%

= 5%

For DEF

Total return = Selling price + Dividend received - Purchasing Cost

= $36 + $1 - $35

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $35 ] × 100%

= 5.7%

Hence,

option C) ABC 5% and DEF 5.7%.

7 0
1 year ago
The method of dividing the project scope into many parts that, when combined, would constitute the project deliverable is called
Contact [7]

Answer: b. decomposition

Explanation:

Decomposition is a project management technique that takes the entire project scope and all project deliverables and breaks them down into smaller components which makes it easy to manage.

However, decomposition may lead to more work without much value for the time spent and inefficient use of resources which will eventually lead to decreased work efficiency.

It involves:

1. Gathering of information on project deliverables to evaluate any related risks

2. Start the breakdown process at the highest level.

3. Decompose the higher levels into lower level detailed components.

4. Verify the degree of decomposition of the work if it is necessary and sufficient.

5 0
2 years ago
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