Question

The following information applies to Questions 29 through 34: Company A provides paintings to customers based on their requests. Mr. Z has asked A to paint a caricature of his dog. Company A will do so and will charge Mr. Z based on the total costs of the project. For this project, the company used $429 in materials, and 40 hours of an artist's labor. The artist is paid based on a $75 per hour rate. Indirect costs, which include a supervisor's salary, utilities and depreciation for the building, equipment for the artist such as paint brushes and an easel are allocated to customer orders based on the artists' labor hours. The estimated indirect costs for Company A are $240,000 and estimated artists' labor hours are 10,000 hours. The total costs for Mr. Z's art project would be $ type your answer... 3 points The following information applies to Questions 29 through 34: Company A provides paintings to customers based on their requests. Mr. Z has asked A to paint a caricature of his dog. Company A will do so and will charge Mr. Z based on the total costs of the project. For this project, the company used $429 in materials, and 40 hours of an artist's labor. The artist is paid based on a $75 per hour rate. Indirect costs, which include a supervisor's salary, utilities and depreciation for the building, equipment for the artist such as paint brushes and an easel are allocated to customer orders based on the artists' labor hours. The estimated indirect costs for Company A are $240,000 and estimated artists' labor hours are 10,000 hours. Assume that for the month, Company A paid the artists $36,000. The amount of hours that the artists worked was type your answer...

Answer 1

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Company A	Amount $	Note
Estimated indirect costs	240,000.00	A
Estimated labor hours	10,000.00	B
Indirect costs allocation rate	24.00	C=A/B
Hours worked on Mr. Z's painting	40.00	D
Indirect costs allocated to Mr. Z's painting	960.00	E=C*D
Labor rate	75.00	F
Hours worked on Mr. Z's painting	40.00	See D
Labor costs allocated to Mr. Z's painting	3,000.00	G=F*D
Final answer	Amount $
Materials used	429.00
Labor costs	3,000.00	See G
Indirect costs allocated	960.00	See E
Total cost of Mr. Z's painting	4,389.00
Company A	Amount $
Labor costs	36,000.00	H
Labor rate	75.00	I
Hours worked on Mr. Z's painting	480.00	J=H/I