Please complete all three parts (refer to picture for info). ### Cost-Estimation and Profit Analysis of Architectural JobHansel Company has requested bids from several architects to design its new corporate headquarters. Frey Architects is bidding on the job. Frey estimates that the job will require the following direct labor:#### Estimated Direct Labor:| Direct Labor | Estimated Hours | Hourly Rate ||--------------|-----------------|-------------|| Architects | 166 | $300 || Staff | 332 | $75 || Clerical | 700 | $20 |Frey applies overhead to jobs at 175% of direct labor cost. Frey wants to earn at least a $55,000 profit on the architectural job. Based on past experience and market research, it estimates that the competition will bid between $293,000 and $366,000 for the job.#### Questions to Address:1. **What is Frey’s estimated cost of the architectural job?**2. **If Frey bids a price of $293,000, what is its expected profit? Will it earn its target profit of $55,000?**3. **What bid price would earn the desired $55,000 target profit?**Complete this question by entering your answers in the tabs below.#### Tabbed Question Entry Interface:**Required 1** | **Required 2** | **Required 3**##### Required 2: Analysis of Bidding Price $293,000**If Frey bids a price of $293,000, what is its expected profit?**- Field for entering expected profit calculation.**If Frey bids a price of $293,000, will it earn its target profit of $55,000?**- Field for entering whether the $55,000 target profit is achieved.##### Navigation:- **Previous:** Required 1- **Next:** Required 3 Hansel Company has requested bids from several architects to design its new corporate headquarters. Frey Architects is bidding on the job. Frey estimates that the job will require the following direct labor:| Direct Labor | Estimated Hours | Hourly Rate ||--------------|-----------------|-------------|| Architects | 166 | $300 || Staff | 332 | $75 || Clerical | 700 | $20 |Frey applies overhead to jobs at 175% of the direct labor cost. Frey wants to earn at least $55,000 profit on the architectural job. Based on past experience and market research, it estimates that the competition will bid between $293,000 and $366,000 for the job.### Questions:1. What is Frey's estimated cost of the architectural job?2. If Frey bids a price of $293,000, what is its expected profit? Will it earn its target profit of $55,000?3. What bid price would earn the desired $55,000 target profit?### Input Form:Complete this question by entering your answers in the tabs below.#### Required 1:**What is Frey's estimated cost of the architectural job?**| Estimated Cost | ||-------------------------------|----------------------------------------------------------|| **Direct labor** | || Estimated hours | Hourly rate | Labor cost | Total Cost || ![blank cell] | ![blank cell] | ![blank cell] | ![blank cell] || ![blank cell] | ![blank cell] | ![blank cell] | ![blank cell] || ![blank cell] | ![blank cell] | ![blank cell] | ![blank cell] || **Total estimated labor cost**| ![blank cell] || **Overhead** | **OH base** | **OH rate** | || **Estimated Applied Overhead**| ![blank cell] | ![blank cell] || **Total estimated cost** | ![highlighted blank cell] |

Bid price is a price at which a buyer is ready to buy the products or services. It is the highest…

Hansel Company has requested bids from several architects to design its new corporate headquarters. Frey Architects is bidding on the job. Frey estimates that the job will require the following direct labor. Direct Labor Architects Staff Clerical Estimated Hours 166 332 700 Hourly Rate $ 300 75 20 Frey applies overhead to jobs at 175% of direct labor cost. Frey wants to earn at least $55,000 profit on the architectural job. Based on past experience and market research, it estimates that the competition will bid between $293,000 and $366,000 for the job. 1. What is Frey's estimated cost of the architectural job? 2. If Frey bids a price of $293,000, what is its expected profit? Will it earn its target profit of $55,000? 3. What bid price would earn the desired $55,000 target profit? Required 1 Complete this question by entering your answers in the tabs below. Required 2 If Frey bids a price of $293,000, what is its expected profit? Will it earn its target profit of $55,000? If Frey bids a price of $293,000, what is its expected profit? If Frey bids a price of $293,000, will it earn its target profit of $55,000? < Required 1 Required 3 Required 3 >

Hansel Company has requested bids from several architects to design its new corporate headquarters. Frey Architects is bidding on the job. Frey estimates that the job will require the following direct labor. Direct Labor Architects Staff Clerical Estimated Hours 166 332 700 Hourly Rate $ 300 75 20 Frey applies overhead to jobs at 175% of direct labor cost. Frey wants to earn at least $55,000 profit on the architectural job. Based on past experience and market research, it estimates that the competition will bid between $293,000 and $366,000 for the job. 1. What is Frey's estimated cost of the architectural job? 2. If Frey bids a price of $293,000, what is its expected profit? Will it earn its target profit of $55,000? 3. What bid price would earn the desired $55,000 target profit? Required 1 Complete this question by entering your answers in the tabs below. Required 2 If Frey bids a price of $293,000, what is its expected profit? Will it earn its target profit of $55,000? If Frey bids a price of $293,000, what is its expected profit? If Frey bids a price of $293,000, will it earn its target profit of $55,000? < Required 1 Required 3 Required 3 >

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 3PA: Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it...

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