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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.) i (Click the icon to viewadditionalinfomation Read the requirements. O Data Table Requirement 2. Compute the predicted cost of the Maynard Manufacturing job. Direct labor hours (professionals) 13.750 hours Chance Realtors Direct labor costs (professionals) 2,200,000 Estimated Cost of the Maynard Manufacturing Job Office rent 330,000 Direct labor 180 hrs. x $ 160 = $ 28,800 Support staff salaries 1,200,000 Utilities 450,000 + Indirect costs 90 % * $ 28,800 = 25,920 $ 54,720 i More Info Print Done Total predicted cost Requirement 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? 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. Add: Required service revenue

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.) i (Click the icon to viewadditionalinfomation Read the requirements. O Data Table Requirement 2. Compute the predicted cost of the Maynard Manufacturing job. Direct labor hours (professionals) 13.750 hours Chance Realtors Direct labor costs (professionals) 2,200,000 Estimated Cost of the Maynard Manufacturing Job Office rent 330,000 Direct labor 180 hrs. x $ 160 = $ 28,800 Support staff salaries 1,200,000 Utilities 450,000 + Indirect costs 90 % * $ 28,800 = 25,920 $ 54,720 i More Info Print Done Total predicted cost Requirement 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? 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. Add: Required service revenue

FINANCIAL ACCOUNTING
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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Question 5, Part 2. Please answer in the same format as the question :)

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 viewadditional information . Read the requirements. Data Table Requirement 2. Compute the predicted cost of the Maynard Manufacturing job. Direct labor hours (professionals) 13,750 hours Chance Realtors Direct labor costs (professionals) $ 2,200,000 Estimated Cost of the Maynard Manufacturing Job Office rent 330,000 Direct labor Support staff salaries 1,200,000 180 hrs. x 160 $ 28,800 Utilities 450,000 + Indirect costs 90 % x $ 28,800 $ 25,920 Print Done 1 More Info Total predicted cost $ 54,720 Requirement 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? 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. Add: Required service revenue Print Done
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 viewadditional information . Read the requirements. Data Table Requirement 2. Compute the predicted cost of the Maynard Manufacturing job. Direct labor hours (professionals) 13,750 hours Chance Realtors Direct labor costs (professionals) $ 2,200,000 Estimated Cost of the Maynard Manufacturing Job Office rent 330,000 Direct labor Support staff salaries 1,200,000 180 hrs. x 160 $ 28,800 Utilities 450,000 + Indirect costs 90 % x $ 28,800 $ 25,920 Print Done 1 More Info Total predicted cost $ 54,720 Requirement 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? 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. Add: Required service revenue Print Done
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