6 accounting questions 494813 | Homework Solutions

1. 12-2 Jeelani Construction Company is composed of two divisions: (1) Home Construction and (2) Commercial Construction. The Home Construction Division is in the process of building 12 houses and the Commercial Construction Division is working on 3 projects. Cost items of the company follow.

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1. 12-2 Jeelani Construction Company is composed of two divisions: (1) Home Construction and (2) Commercial Construction. The Home Construction Division is in the process of building 12 houses and the Commercial Construction Division is working on 3 projects. Cost items of the company follow. Company president’s salary Depreciation on crane used in commercial construction Depreciation on home office building Salary of corporate office manager Wages of workers assigned to a specific construction project Supplies used by the Commercial Construction Division Labor on a particular house Salary of the supervisor of commercial construction projects Supplies, such as glue and nails, used by the Home Construction Division Cost of building permits Materials used in commercial construction projects Depreciation on home building equipment (small tools such as hammers or saws) Required a. Identify each cost as being a direct or indirect cost assuming the cost objects are the individual products (houses or projects). b. Identify each cost as being a direct or indirect cost, assuming the cost objects are the two divisions. c. Identify each cost as being a direct or indirect cost assuming the cost object is Jeelani Construction Company as a whole. 2) 12-4 Nevin Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include the following. Required a. Allocate the budgeted overhead costs to the products. b. Provide a possible explanation as to why Nevin chose machine hours, instead of labor hours, as the allocation base. 3) 12-8 Stevens Air is a large airline company that pays a customer relations representative $4,000 per month. The representative, who processed 1,000 customer complaints in January and 1,300 com- plaints in February, is expected to process 12,000 customer complaints during 2012. Required a. Determine the total cost of processing customer…

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