5.17 | Q1, Q2, Q3Job 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. Direct professional labor | $20,000 | Direct support labor | 10,000 | Fringe benefits for direct labor | 13,000 | Photocopying | 2,000 | Telephone calls | 2,000 | Computer equipment | 6,000 |
Overhead is allocated at the rate of 100% of direct labor cost.REQUIRED: | A. | Prepare a schedule of the budgeted total costs for the client. Show subtotals for total direct labor costs and total costs as a basis for markup. | | B. | Assume that the partner’s policy is to quote a fixed fee at 10% above the total costs. What fee would be quoted? | | C. | Explain why the listed estimates for costs might not be similar to the actual costs for the job. What factors could affect the accuracy of these estimates? List as many factors as you can. | | 6.55 | Q1, Q8Costs 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. * 2.2 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.To promote improved health and safety, HSE provides strategic direction, investigates and enforces regulations, and works with employers and other groups to promote better workplace