2 From requirement 1, we have calculated
Actual rate (€)
Budgeted rate (€)
Direct-cost rate
55 60
Indirect-cost rate
38 40 Hence, the unknowns for Eldorado for 2007–2008 are
Actual
amounts
for 2007–2008
Budgeted amounts
for 2007–2008
Consulting labour compensation (€)
1,155,002 1,080,000 Consulting labour-hours (hour)
21,000 18,000 Consulting support costs (€)
798,000 720,000 The road map to compute these amounts is
€1,155,000
↑
€1,080,000
↑
21,000 hours g hours
g €720,000 4
← Consulting labour-hours Ag Consulting labour compensation (A) = €1,155,000 (€55 × 21,000
←
)
→ Consulting labour compensation (B) = €1,080,000 (€60 × g)
↓ Consulting support costs (B)
= €720,000 (€40 × g)
Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5 th Edition, Instructor’s Manual © Pearson Education Limited An overview of the Eldorado job-costing system is Share with your friends: |
