4-21 Job costing, consulting firm. Turner & Associates, a consulting firm, has the following condensed budget for 2011: Revenues $21,250,000 Total costs: Direct costs Professional Labor $ 5,312,500 Indirect costs Client support 13,600,000 18,912,500 Operating income $ 2,337,500 Turner has a single direct-cost category (professional labor) and a single indirect-cost pool (client support). Indirect costs are allocated to jobs on the basis of professional labor costs. 1. Prepare an overview diagram of the job-costing system. Calculate the 2011 budgeted indirect-cost rate for Turner & Associates. 2. The markup rate for pricing jobs is intended to produce operating income equal to 11% of revenues. Calculate the markup rate as a percentage of professional labor costs. 3. Turner 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 198 Professional Labor Category Director Partner Associate Assistant 101 49 36 Budgeted Hours 4 17 42 153 Calculate the budgeted cost of the Tasty Chicken job. How much will Turner bid for the job if it is to earn its target operating income of 11% of revenues