AC 420 help A Guide to career/Snaptutorial AC 420 help A Guide to career/Snaptutorial | Page 2

Joe Reynolds painted four houses during Apri2013. For these jobs, he
spent $2,400 on paint, $160 on mineral spirits, and $300 on brushes.
He also bought two pairs of coveralls for $100 each; he wears
coveralls only while he works. During the first week of April,
Reynolds placed a $200 ad for his business in the classifieds. He hired
an assistant for one of the painting jobs; the assistant was paid $25 per
hour and worked 50 hours. Being a very methodical person, Reynolds
kept detailed records of his mileage to and from each painting job.
The average operating cost per mile for his van is $0.70. He found a
$30 receipt in his van for a metropolitan map that he purchased in
April. He uses the map as part of a contact file for referral work and
for bids that he has made on potential jobs. He also had $30 in
receipts for bridge tolls ($2 per trip) for a painting job he completed
across the river. Near the end of April, Reynolds decided to go
camping, and he turned down a job on which he had bid $6,000. He
called the homeowner long distance (at a cost of $2.20) to explain his
reasons for declining the job. Using the following headings, indicate
how to classify each of the April costs incurred by Reynolds. Assume
that the cost object is a house-paint job.
2-41
Mason Company’s cost structure contains a number of different cost
behavior patterns. Following are descriptions of several different
costs; match these to the appropriate graphs. On each graph, the
vertical axis represents cost, and the horizontal axis represents level of
activity or volume. Identify, by letter, the graph that illustrates each of
the following cost behavior patterns. Each graph can be used more
than once. A B C E F G H I J K L D.
At year-end 2013, Dub’s Wind Generator Co. had a $40,000 debit
balance in its Manufacturing Overhead Control account. Overhead is
applied to products based on direct labor cost. Relevant account
balance information at year-end follows:
Pete’s Plant Stands manufactures wooden stands used by plant
nurseries. In May 2013, the company manufactured 18,000 and sold
16,560 stands. The cost per unit for the 18,000 stands produced was
as follows:
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