Chance Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2018, managing partner Andrew Chance prepared the following budget for the year: E (Click the icon to view the prepared budget.) A (Click the icon to view additional information.) Read the requirements. Requirements Requirement 1. Compute Chance Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate. 1. Compute Chance Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate. Begin with (a) hourly direct labor cost rate. Direct labor 2. Compute the predicted cost of the Maynard Manufacturing job. 3. If Chance wants to earn a profit that equals 25% of the job's cost, how much should he bid for the Maynard Manufacturing job? cost rate per hour Data Tabl Print Done More Info Direct labor hours (professionals) 13,750 hours Maynard Manufacturing, Inc. is inviting several consultants to bid for work. Andrew Chance wants to submit a bid. He estimates that this job will require about 180 direct labor hours. Direct labor costs (professionals) 2$ 2,200,000 Office rent 330,000 Support staff salaries 1,200,000 Print Done Utilities 450,000
Chance Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2018, managing partner Andrew Chance prepared the following budget for the year: E (Click the icon to view the prepared budget.) A (Click the icon to view additional information.) Read the requirements. Requirements Requirement 1. Compute Chance Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate. 1. Compute Chance Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate. Begin with (a) hourly direct labor cost rate. Direct labor 2. Compute the predicted cost of the Maynard Manufacturing job. 3. If Chance wants to earn a profit that equals 25% of the job's cost, how much should he bid for the Maynard Manufacturing job? cost rate per hour Data Tabl Print Done More Info Direct labor hours (professionals) 13,750 hours Maynard Manufacturing, Inc. is inviting several consultants to bid for work. Andrew Chance wants to submit a bid. He estimates that this job will require about 180 direct labor hours. Direct labor costs (professionals) 2$ 2,200,000 Office rent 330,000 Support staff salaries 1,200,000 Print Done Utilities 450,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question 5 Part 1
Transcribed Image Text:Chance Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct
labor costs. At the beginning of 2018, managing partner Andrew Chance prepared the following budget for the year:
E (Click the icon to view the prepared budget.)
A (Click the icon to view additional information.)
Requirements
Read the requirements.
Requirement 1. Compute Chance Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate.
1. Compute Chance Realtors' (a) hourly direct labor cost rate and (b)
predetermined overhead allocation rate.
2. Compute the predicted cost of the Maynard Manufacturing job.
3. If Chance wants to earn a profit that equals 25% of the job's cost, how much
should he bid for the Maynard Manufacturing job?
Begin with (a) hourly direct labor cost rate.
Direct labor
cost rate
per hour
Data Tabl
Print
Done
More Info
Direct labor hours (professionals)
13,750 hours
Maynard Manufacturing, Inc. is inviting several consultants to bid for work. Andrew
Chance wants to submit a bid. He estimates that this job will require about 180
direct labor hours.
Direct labor costs (professionals)
$
2,200,000
Office rent
330,000
Support staff salaries
1,200,000
Print
Done
Utilities
450,000
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