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When job costing is used as a service firm:

 When job costing is used as a service firm:

A) indirect costs are traced to client jobs.

B) direct costs are allocated to client jobs.

C) all costs are allocated to client jobs.

D) indirect costs are allocated to client jobs.

12) When job costing is used at a service firm, the bill to the client shows:

A) actual direct cost of providing the service.

B) the allocation of indirect costs.

C) the profit on the job.

D) the billing rate and hours spent on the job.

13) The hourly price charged to clients for professional labor is called the:

A) billing rate.

B) salary rate.

C) wage rate.

D) job rate.

14) The journal entries needed for job costing at a service company:

A) are more complicated than those needed at a manufacturing company.

B) are virtually the same as those needed at a manufacturing company.

C) are simpler than those needed at a manufacturing company.

D) include the movement of inventory.

15) Service firms develop a predetermined rate for some costs. What is this rate called?

A) Labor rate

B) Indirect cost allocation rate

C) Direct cost rate

D) Hourly cost rate

16) An interior designer spends 30 hours working with client #140 during April. Her basic annual salary is $60,000, while her annual salary plus benefits totals $90,000 per year. She typically works 40 hours a week for 50 weeks each year. What is the hourly cost to the firm that employs her?

A) $30

B) $1,350

C) $43

D) $45

17) Coopers & Stocker Consulting pays Kelly Yoster $61,000 per year. The cost of her annual benefits is $19,000. Kelly works 2,000 hours per year.

A) What is the hourly rate to Coopers & Stocker Consulting of employing Kelly Yoster?

B) If Yoster works 25 hours for client 310, what is the direct labor cost associated with that client?

Dec 09 2019 View more View Less

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