Job costing, consulting firm. Taylor & Associates, a consulting firm, has the follow- ing condensed budget for 195:

Revenues Total costs:

Direct costs Professional labor Indirect costs Client support Operating income 5 5,000,000 13,000,000

$20,000,000 18,000,000 S 2,000,000 Taylor has a single direct cost category (professional labor) and a single indirect cost

(client support). Indirect costs are allocated to jobs on the basis of professional labor costs.

Required 1. Present an overview diagram of the job ^ting system.

2. Compute the lc 5 budgeted indirect cob ate for Taylor & Associates.

3. The markup rate for pricing jobs is intern to produce a 10% operating income-to-revenue margin. Compute the markup rate as a per :>ntage of professional labor costs.

4. Taylor is bidding on a consulting job for Red Rooster, a fast-food chain specializing in poultry meats. The budgeted breakdown of professional labor on the job is:
Professional Category Labor Budgeted Rate Budgeted per Hour Hours Director S200 3 Partner 100 16 Associate 50 40 Assistant 30 160 Compute the budgeted cost of the Red Rooster job. How much will Taylor bid for the job if it is to earn its target operating income-to-revenue margin of 10c"c ?