During the most recent year, the firm estimated that it would pay $280,000 to its consultants and incur indirect operating costs of$420,000. Actual consultant labor costs were $295,000 and actual indirect operating costs were $410,000. The cost records for threeof Optimum's clients are summarized below:Food and nutritional supplementsNutritional counseling ($12 per hour)Personal fitness training ($17 per hour)Indirect operating costsRequired 1 Required 2 Required 3Determine the total cost of serving each client.Judy$ 1,630Total Cost of ServingComplete this question by entering your answers in the tabs below.JudyTom$ 2,825 × $Elizabeth2,000$ 400120340Required:1. Compute the predetermined overhead rate.2. Determine the total cost of serving each client.3. Assume the company charges clients an up-front fee of $480. Food and nutritional supplements are priced at 20 percent abovecost. Clients are charged $33 per hour for consulting services (both nutrition counseling and personal training). Determine theprofitability of each client.> Answer is complete but not entirely correct.?< Required 1Tom$ 1,200240510?Required 3 >Elizabeth$200144680?

Predetermined overhead is the phrase used to describe the projected manufacturing overhead costs…

During the most recent year, the firm estimated that it would pay $280,000 to its consultants and incur indirect operating costs of $420,000. Actual consultant labor costs were $295,000 and actual indirect operating costs were $410,000. The cost records for three of Optimum's clients are summarized below: Food and nutritional supplements Nutritional counseling ($12 per hour) Personal fitness training ($17 per hour) Indirect operating costs Judy $ 400 ? 120 340 Tom $ 1,200 ? 240 510 Elizabeth $ 200 144 680 ? Required: 1. Compute the predetermined overhead rate. 2. Determine the total cost of serving each client. 3. Assume the company charges clients an up-front fee of $480. Food and nutritional supplements are priced at 20 percent above cost. Clients are charged $33 per hour for consulting services (both nutrition counseling and personal training). Determine the profitability of each client.

During the most recent year, the firm estimated that it would pay $280,000 to its consultants and incur indirect operating costs of $420,000. Actual consultant labor costs were $295,000 and actual indirect operating costs were $410,000. The cost records for three of Optimum's clients are summarized below: Food and nutritional supplements Nutritional counseling ($12 per hour) Personal fitness training ($17 per hour) Indirect operating costs Judy $ 400 ? 120 340 Tom $ 1,200 ? 240 510 Elizabeth $ 200 144 680 ? Required: 1. Compute the predetermined overhead rate. 2. Determine the total cost of serving each client. 3. Assume the company charges clients an up-front fee of $480. Food and nutritional supplements are priced at 20 percent above cost. Clients are charged $33 per hour for consulting services (both nutrition counseling and personal training). Determine the profitability of each client.

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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