Question

1. Determine A1CS’s total traceable costs for the coming year and the firm’s total
anticipated overhead. (4 marks)
2. Calculate the predetermined overhead rate, assuming the cost driver is traceable costs.
(3 marks)
3. What percentage of cost will A1CS add to each job to achieve its profit target? (3 marks)
4. Determine the total cost of the Mango Manufacturing project. (5 marks)
5. How much Mango Manufacturing would be billed for the services performed? (5 marks)
6. Compare the approach used in requirement 5 with client billing system described in
Topic 8. (4 marks)
7. Only 75 per cent of A1CS’s other operating cost is directly traceable to specific client
projects. Identify three costs that would be included in other operating costs and would
be difficult to trace to clients. (3 marks)
8. 85 per cent of the professional staff cost is directly traceable to specific client projects.
Give two reasons that would explain why this figure isn’t 100 per cent. (3 marks)

Answer 1

Answer:

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