struction and Zachary specializes in residential construction. Ace expects to incur total overhead costs of $779,625 during the year d applies overhead based on annual salary costs. Caitlin is a senior partner, her annual salary is $168,750, and she is expected to bill 00 hours during the year. Zachary is a senior associate, his annual salary is $91,125, and he is expected to bill 1,800 hours during year. quired: Calculate the predetermined overhead rate. Assuming that the hourly billing rate should be set to cover the total cost of services plus a 20% markup, compute the hourly billing rates for Judy and Steve. Complete this question by entering your answers in the tabs below.
struction and Zachary specializes in residential construction. Ace expects to incur total overhead costs of $779,625 during the year d applies overhead based on annual salary costs. Caitlin is a senior partner, her annual salary is $168,750, and she is expected to bill 00 hours during the year. Zachary is a senior associate, his annual salary is $91,125, and he is expected to bill 1,800 hours during year. quired: Calculate the predetermined overhead rate. Assuming that the hourly billing rate should be set to cover the total cost of services plus a 20% markup, compute the hourly billing rates for Judy and Steve. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ce Architects employs two architects, each having a different area of specialization. Caitlin specializes in industrial commercial
construction and Zachary specializes in residential construction. Ace expects to incur total overhead costs of $779,625 during the year
and applies overhead based on annual salary costs. Caitlin is a senior partner, her annual salary is $168,750, and she is expected to bill
2,000 hours during the year. Zachary is a senior associate, his annual salary is $91,125, and he is expected to bill 1,800 hours during
he year.
Required:
a. Calculate the predetermined overhead rate.
b. Assuming that the hourly billing rate should be set to cover the total cost of services plus a 20% markup, compute the hourly billing
rates for Judy and Steve.
Complete this question by entering your ans ers in e
Required A Required B
Calculate the predetermined overhead rate.
Predetermined overhead rate
<Required A
os
elow.
Required B >
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