Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the hourly billing rate for Debbie and Tara. (Do not round your intermediate calculations, and round your finalanswers to 2 decimal places.)Billing RateDebbieTara McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercialappraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $426,450 during theyear and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be asfollows:Annual SalaryBillable HoursDebbie$190,0002,500The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for Debbie and Tara'sservices. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 30 percent markup.Tara$94,3002,050Required:1. Compute the predetermined overhead rate.2. Compute the hourly billing rate for Debbie and Tara.Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the predetermined overhead rate.Predetermined Overhead Rate% of Salary Cost

Lets understand the basics.Predetermined rate means an indirect cost rate..predetermined overhead…

Annual Salary Billable Hours Debbie Tara $190,000 $94,300 2,500 2,050 he accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for D ervices. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 30 per equired: Compute the predetermined overhead rate. Compute the hourly billing rate for Debbie and Tara.

Annual Salary Billable Hours Debbie Tara $190,000 $94,300 2,500 2,050 he accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for D ervices. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 30 per equired: Compute the predetermined overhead rate. Compute the hourly billing rate for Debbie and Tara.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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