A consulting business estimates its direct labor costs to be $4,000,000 for the year. The estimated direct labor hours are 60,000. Overhead is allocated based on direct labor hours, and estimated overhead is $900,000 annually. The business desires a 50% markup. Calculate the following: ⚫ Direct labor rate per hour Predetermined overhead allocation rate Price per hour that it will charge its clients in order to earn the desired markup

A consulting business estimates its direct labor costs to be $4,000,000 for the year. The estimated direct labor hours are 60,000. Overhead is allocated based on direct labor hours, and estimated overhead is $900,000 annually. The business desires a 50% markup. Calculate the following: ⚫ Direct labor rate per hour Predetermined overhead allocation rate Price per hour that it will charge its clients in order to earn the desired markup

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EB: The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method,...

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