Required information [The following information applies to the questions displayed below.] JLR Enterprises provides consulting services throughout California and uses a job-order costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR, but not identifiable with specific clients, are charged to jobs by using a predetermined overhead application rate. Clients are billed for directly chargeable costs, overhead, and a markup. JLR's director of cost management, Victor Anthony, anticipates the following costs for the upcoming year: Percentage of Cost Directly Traceable to Clients 80% 60% 90% 90% 50% Type Professional staff salaries Administrative support staff Travel Photocopying Other operating costs Total Cost $ 2,500,000 300,000 250,000 50,000 100,000 $ 3,200,000 The firm's partners desire to make a $640,000 profit for the firm and plan to add a percentage markup on total cost to achieve that figure. On March 10, JLR completed work on a project for Martin Manufacturing. The following costs were incurred: professional staff salaries, $41,000; administrative support staff, $2,600; travel, $4,500; photocopying, $500; and other operating costs, $1,400. Required: 1. Determine JLR's total traceable costs for the upcoming year and the firm's total anticipated overhead. Total traceable costs Total anticipated overhead
Required information [The following information applies to the questions displayed below.] JLR Enterprises provides consulting services throughout California and uses a job-order costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR, but not identifiable with specific clients, are charged to jobs by using a predetermined overhead application rate. Clients are billed for directly chargeable costs, overhead, and a markup. JLR's director of cost management, Victor Anthony, anticipates the following costs for the upcoming year: Percentage of Cost Directly Traceable to Clients 80% 60% 90% 90% 50% Type Professional staff salaries Administrative support staff Travel Photocopying Other operating costs Total Cost $ 2,500,000 300,000 250,000 50,000 100,000 $ 3,200,000 The firm's partners desire to make a $640,000 profit for the firm and plan to add a percentage markup on total cost to achieve that figure. On March 10, JLR completed work on a project for Martin Manufacturing. The following costs were incurred: professional staff salaries, $41,000; administrative support staff, $2,600; travel, $4,500; photocopying, $500; and other operating costs, $1,400. Required: 1. Determine JLR's total traceable costs for the upcoming year and the firm's total anticipated overhead. Total traceable costs Total anticipated overhead
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Required information
[The following information applies to the questions displayed below.]
JLR Enterprises provides consulting services throughout California and uses a job-order costing system to accumulate the
cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR,
but not identifiable with specific clients, are charged to jobs by using a predetermined overhead application rate. Clients
are billed for directly chargeable costs, overhead, and a markup.
JLR's director of cost management, Victor Anthony, anticipates the following costs for the upcoming year:
Percentage of Cost
Directly Traceable to
Clients
80%
60%
90%
90%
50%
Type
Professional staff salaries
Administrative support staff
Travel
Photocopying
Other operating costs
Total
Cost
$ 2,500,000
300,000
250,000
50,000
100,000
$ 3,200,000
The firm's partners desire to make a $640,000 profit for the firm and plan to add a percentage markup on total cost to
achieve that figure.
On March 10, JLR completed work on a project for Martin Manufacturing. The following costs were incurred: professional
staff salaries, $41,000; administrative support staff, $2,600; travel, $4,500; photocopying, $500; and other operating costs,
$1,400.
Required:
1. Determine JLR's total traceable costs for the upcoming year and the firm's total anticipated overhead.
Total traceable costs
Total anticipated overhead](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0db27216-f1cf-403f-b102-8f9334d7d9c8%2Fd8200ad0-1a53-43b6-a45f-46051a8e2ff5%2Fhl69hx3_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
JLR Enterprises provides consulting services throughout California and uses a job-order costing system to accumulate the
cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR,
but not identifiable with specific clients, are charged to jobs by using a predetermined overhead application rate. Clients
are billed for directly chargeable costs, overhead, and a markup.
JLR's director of cost management, Victor Anthony, anticipates the following costs for the upcoming year:
Percentage of Cost
Directly Traceable to
Clients
80%
60%
90%
90%
50%
Type
Professional staff salaries
Administrative support staff
Travel
Photocopying
Other operating costs
Total
Cost
$ 2,500,000
300,000
250,000
50,000
100,000
$ 3,200,000
The firm's partners desire to make a $640,000 profit for the firm and plan to add a percentage markup on total cost to
achieve that figure.
On March 10, JLR completed work on a project for Martin Manufacturing. The following costs were incurred: professional
staff salaries, $41,000; administrative support staff, $2,600; travel, $4,500; photocopying, $500; and other operating costs,
$1,400.
Required:
1. Determine JLR's total traceable costs for the upcoming year and the firm's total anticipated overhead.
Total traceable costs
Total anticipated overhead
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