4-21 Job costing, consulting firm. Taylor & Associates, a consulting firm, has the following condensed budget for 2014 Revenues $20,000,000 Total costs: Direct costs Professional Labor $5,000,000 Indirect costs Client support 13,000,000 18,000,000 Operating income $ 2,000,000 ASSIGNMENT MATERIAL 139 Taylor has a single direct-category (professional labor) and a single indirect-cost pool client support). Indirect costs are allocate a tujuks on the basis of professional labor costs. 1. Prepare an overview diagram of the job-costing system. Calculate the 2014 budgeted indirect-cost Required rate for Taylor & Associates 2. The markup rate for pricing jobs is intended to produce operating income equal to 10% of revenues. Calculate the markup rate as a percentage of professional labor costs. 3. Taylor is bidding on a consulting job for Tasty Chicken, a fast food chain specializing in poultry meats. The budgeted breakdown of professional labor on the job is as follows: Budgeted Rate per Hour $200 Professional Labor Category Director Partner Associate Assistant 100 Budgeted Hours 3 16 40 160 50 30 Calculate the budgeted cost of the Tasty Chicken job. How much will Taylor bid for the job if it is to earn its target operating income of 10% of revenues