PLease answer all parts for the Accounting question. Thank you! 2) Job costing E

Question

PLease answer all parts for the Accounting question. Thank you!

2) Job costing Engineering Consulting is an engineering consulting firm. It employs 40 professional engineers, and 10 administrative and support staff. The firm regards each customer as a job. It keeps track of all salaries, overhead costs and travel expenses incurred by its employees. Employees are required to complete a weekly time-sheet showing the amount of time they spent on each customer's account, and the expenses that they incurred. The time-sheets also show how much time was spent on what the firm calls "non- chargeable costs" such as general administration and idle time between jobs. The hourly cost of employee time is based on the annual salary, and a 2000-hour working year The firm applied overhead at the predetermined overhead rate of 60% of direct (actual) salary cost. The firm's CEO had produced the following estimates for 2015 Salaries of professional staff Salaries of supportpersonnel $1,188,000 121,000 565,000 Rent, utilities and other costs not directly billable to customers (or jobs)

Explanation / Answer

It is also accepted under GAAP &IFRS to arrive at job/product costs

1. Cost of work done for General Electric in the first week of 2015 Jack Young Salaries 23500/2000*2*36 = 846 Less: Non-Chargeable20% 169.2 676.8 Travel Actuals 360 1036.8 Chia Leung Salaries 38200/2000*2*29= 1107.8 Less: Non-Chargeable20% 221.56 886.24 Travel Actuals 185 1071.24 Prem Ratnam Salaries 47300/2000*2*22 = 1040.6 Less: Non-Chargeable50% 520.3 520.3 Travel 0 520.3 Total compensation to employees on the Job 2628.34 OH for non-chargeable time(169.2+221.56+520.3) 911.06 Other OHs applied 60%*(676.8+886.24+520.3) 1250.00 Total OH Charged to the Job 2161.06 Total cost of Work done(2628.34+2161.06) 4789.40

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