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5.17
Job costing, service sector Consider the following budgeted data for a
client job of Bob Crachit’s accounting firm. The client wants a fixed
price quotation.
Overhead is allocated at the rate of 100% of direct labor cost.
REQUIRED:
6.55
Costs of workplace health and safety Britain’s Health and Safety
Executive (HSE) is a national regulatory body overseeing workplace
health and safety. In its 2007 performance report, HSE reported the
following statistics:
•
241 workers were killed at work.
•
141,350 employees suffered serious injuries at work.
•
2 million people were suffering from an illness they believed
was caused or made worse by their current or past work. 646,000 of
these were new cases in the last 12 months.
•
36 million days were lost overall (1.5 days per worker), 30
million due to work-related ill health and 6 million due to workplace
injury.
•
£20 billion (approximately 2% of GDP) is the estimated annual
cost to society of work-related accidents and ill health.
8.25
Step-down, direct, and reciprocal methods, accuracy of allocation
(Appendix 8A) Software Plus Corporation produces flight and driving
simulations and games for personal computers. The president has a
complaint about the accounting for support department costs. He points
to the following table describing the use of various support departments
in the company and says, “According to this table, every department