A recent storm damaged part of the exterior of the Inn. A local repairman, Mike Hammer, was asked to submit a bid to do the repair work. He determined it would take two workers 12 hours each to repair the Inn using the following materials: Wood 16 boards @ $22.50 per board Hammer estimated his overhead for the year to be $81,000 based on an estimated cost of materials used of $30,000. He pays his workers $18 per hour.

a) What was the predetermined overhead rate for the year?

b) How much overhead was charged to the Red Mill Inn job?

c) What was the total cost of the Red Mill Inn job? DM DL OH Total cost

d) If Hammer charges an amount equal to 30% above his cost, what would his bid be to repair the damage to the Red Mill Inn? Cost Profit Bid