Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Chapter 4, Problem 13P
Determine over-and underbillings for a company with the following information:
Job Number: 311
Job Name: Smith Remodel
Current Contract Amount: $22,530
Total Estimated Cost at Completion: $17,264
Actual Costs to Date: $16,538
Total Billed: $21,000
Job Number: 316
Job Name: Redd Remodel
Current Contract Amount: $35,624
Total Estimated Cost at Completion: $28,221
Actual Costs to Date: $22,345
Total Billed: $28,500
Job Number: 318
Job Name Winter Remodel
Current Contract Amount $17,954
Total Estimated Cost a: Completion. $14,567
Actual Costs to Date: $4,562
Total Billed: $6,000
Job Number: 322
Job Name Richardson Remodel
Current Contract Amount $3,213
Total Estimated Cost at Completion: $3,721
Actual Costs to Date: $1,956
Total Billed: $0
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Hillcrest Publishing Co. established the following cost pools for 2018 support costs:
Cost Pool
Machine setup
Amount
$25,000
$22,000
$18,000
$16,000
Cost Driver
Setup hours
Number of inspections
Number
900
Inspection
Maintenance
400
Machine hours
9,800
200
Materials handling
Number of moves
The following data pertains to two jobs performed during 2018:
Job #60
1,450
$11,510
$8,220
Job #70
1,060
$8,890
$6,780
Item
Number of units
Direct materials cost
Direct labor cost
Machine hours
750
610
Direct labor hours
595
475
Number of material moves
44
17
Number of setup hours
Number of inspections
72
39
36
21
Determine the unit cost of Job #70 using activity based costing: $
Hillcrest Publishing Co. established the following cost pools for 2018 support costs:
Cost Pool
Machine setup
Amount
$25,000
$22,000
$18,000
$16,000
Cost Driver
Setup hours
Number of inspections
Number
900
Inspection
Maintenance
400
Machine hours
9,800
Materials handling
Number of moves
200
The following data pertains to two jobs performed during 2018:
Job #60
1,450
$11,510
$8,220
Job #70
1,060
$8,890
$6,780
610
Item
Number of units
Direct materials cost
Direct labor cost
Machine hours
750
Direct labor hours
595
475
Number of material moves
Number of setup hours
Number of inspections
44
17
72
39
36
21
(1) Determine the unit cost of Job #60 using machine hrs. to allocate all support costs: $
Determine over and underbilling's for a company with the following information: • Job
Number: 311 Job Name: Smith Remodel Current Contract Amount: $22,530 o Total Estimated
Cost at Completion: $17, 264 Actual Costs to Date: $16, 538 Total Billed: $21,000 • Job
Number: 316 Job Name: Redd Remodel Current Contract Amount: $35, 624 o Total Estimated
Cost at Completion: $28, 221 Actual Costs to Date: $22,345 Total Billed: $28, 500
Chapter 4 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 4 - Define committed costs and provide two examples of...Ch. 4 - Why is labor seldom a committed cost?Ch. 4 - Prob. 3DQCh. 4 - What are overbillings and how do they occur?Ch. 4 - Prob. 5DQCh. 4 - What are the six key principals of internal...Ch. 4 - What should you look for in a construction...Ch. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10P
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