Please do not give solution in image format thanku A law firm uses activity-based pricing. The company's annual activity pools and related information are as follows:Cost PoolEstimated CostCost DriverDriverQuantityConsultationconsultationsAdministrative costsClient service$125.000$1.442$1,9545721$2.03966,00034.000Number of consultationsAdmin labor hoursNumber of clients2006.000 labor hours400 clientsThe pricing structure is to charge customers for the cost of the services that are provided. The firm had two consultations with Randall's Auto Shop and required64 administrative labor hours. What additional costs will be charged to this customer?

The overhead is applied to the production on the basis of the pre-determined overhead rate. The…

A law firm uses activity-based pricing. The company's annual activity pools and related information are as follows: Estimated Cost Driver Cost Driver Number of consultations Cost Pool Quantity Consultation consultations Administrative costs Client service $125.000 66.000 34.000 Admin labor hours Number of clients 200 6.000 labor hours 400 clients The pricing structure is to charge customers for the cost of the services that are provided. The firm had two consultations with Randall's Auto Shop and required 64 administrative labor hours. What additional costs will be charged to this customer? $1.442 $1,954 $721 $2.039

A law firm uses activity-based pricing. The company's annual activity pools and related information are as follows: Estimated Cost Driver Cost Driver Number of consultations Cost Pool Quantity Consultation consultations Administrative costs Client service $125.000 66.000 34.000 Admin labor hours Number of clients 200 6.000 labor hours 400 clients The pricing structure is to charge customers for the cost of the services that are provided. The firm had two consultations with Randall's Auto Shop and required 64 administrative labor hours. What additional costs will be charged to this customer? $1.442 $1,954 $721 $2.039

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Objective: Consider that you are an analyst at Regeneron Pharmaceuticals. You need to decide how to allocate administrative overhead costs to Regeneron's main commercial products (Eylea, Dupixent, Kevzara and Praluent). Determine how to appropriately allocate the costs in the table below to each of the commercial products using an allocation methodology of your choice. Department2019 Annual Operating ExpenseTime spent supporting Commercial productsCommercial$200MM100%IT$100MM25%Facilities$150MM0%Finance$25MM20%Human Resources$75MM10% Use the supporting document Net Product Sales of REGN Products to facilitate your analysis. Provide a written summary of how you allocated the overhead costs to each product in an outline of no more than one page. As a starting point, it's recommended that you revisit the material we covered in Chapter 12. Guidance on calculations:Start off with Net Product Sales of REGN Products. Your objective pertains to 2019 expenses, so you should be reviewing 2019…
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Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs Service department costs IT allocation HR allocation Total costs allocated $ IT IT 0 25 $ 159,000 Required: Use the direct method to allocate these service department costs to the operating departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishing" and "Binding" answers to 2 decimal places. HR 1,100 0 $ 247,500 0 $ HR Publishing 1,100 33 $ 430,000 0 $ Publishing Binding 3,300 49 $ 390,000 0.00 $ Binding 0.00
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