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A construction company undertook three projects during the month of July. The following information is available: Project A: Direct materials $50,000, Direct labor $30,000, Indirect
A construction company undertook three projects during the month of July. The following information is available:
- Project A: Direct materials $50,000, Direct labor $30,000, Indirect costs $20,000
- Project B: Direct materials $70,000, Direct labor $40,000, Indirect costs $25,000
- Project C: Direct materials $40,000, Direct labor $25,000, Indirect costs $15,000
a. Calculate the total cost for each project. b. Determine the overhead rate using direct labor costs if direct labor costs are Project A: $30,000, Project B: $40,000, Project C: $25,000. c. Allocate the indirect costs to each project. d. Analyze the profitability of each project based on the allocated costs.
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