of the two appraisers are Annual Salary Billable Hours as The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for Debbie's and Tara's services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 25 percent markup. Required 1 Debbie $ 157,920 2,100 Required: 1. Compute the predetermined overhead rate. 2. Compute the hourly billing rates for Debbie and Tara Required 2 Complete this question by entering your answers in the tabs below. Tara $ 83,620 1,850 Predetermined Overhead Rate Compute the predetermined overhead rate. % of Salary Cost < Required t Required 2 >
of the two appraisers are Annual Salary Billable Hours as The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for Debbie's and Tara's services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 25 percent markup. Required 1 Debbie $ 157,920 2,100 Required: 1. Compute the predetermined overhead rate. 2. Compute the hourly billing rates for Debbie and Tara Required 2 Complete this question by entering your answers in the tabs below. Tara $ 83,620 1,850 Predetermined Overhead Rate Compute the predetermined overhead rate. % of Salary Cost < Required t Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:McBride and Associates employs two professional appraisers, each having a different specialty. Debble specializes
in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead
costs of $362,310 during the year and applies overhead based on annual salary costs. The salaries and billable hours
of the two appraisers are estimated to be as follows:
Annual Salary
Billable Hours
Debbie
$ 157,920
2,100
The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for
Debbie's and Tara's services. The hourly billing rate should be set to cover the total cost of services (salary plus
overhead) plus a 25 percent markup.
Required:
1. Compute the predetermined overhead rate.
2. Compute the hourly billing rates for Debbie and Tara
Required 1 Required 2
Tara
$ 83,620
1,850
Complete this question by entering your answers in the tabs below.
Compute the predetermined overhead rate.
Predetermined Overhead Rate
% of Salary Cost
< Required f
Required 2 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the hourly billing rates for Debbie and Tara.
Note: Do not round your intermediate calculations, and round your finial answers to 2 decimal places
Billing Rate
Debbie
Tara
< Required 1
Frequired
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