Maurice Tutor

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About Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 25 Jul 2017 My Price 8.00

Amesbury Construction

Job costing, normal and actual costing. Amesbury Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2010, Amesbury budgets 2011 assembly-support costs to be $8,300,000 and 2011 direct labor-hours to be 166,000. At the end of 2011, Amesbury is comparing the costs of several jobs that were started and completed in 2011.

Direct materials and direct labor are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labor-hours are worked. The 2011 actual assembly-support costs were $6,520,000, and the actual direct labor-hours were 163,000.
1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ? Required 
2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing?
3. Why might Amesbury Construction prefer normal costing over actualcosting?

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Jul 2017 12:07 AM My Price 8.00

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