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
Chapter1: Financial Statements And Business Decisions
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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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