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Aloysius operates an interior design business and relies on contractors in a variety of industries to complete the work. However, some clients just want him
Aloysius operates an interior design business and relies on contractors in a variety of industries to complete the work. However, some clients just want him to design, and they'll do the work themselves. His last job was like that; he spent 20 hours designing an updated kitchen, bath, and entryway for a client. For these design-only jobs, he bills clients at a flat rate of $30 per hour that covers both his labor and overhead costs. His next client has a complex job that requires the use of contractors. This time, Aloysius breaks the job into key activities, using specific predetermined rates to create the bid: $150 per room designed, $20 per hour (for Aloysius's time), and $150 per change order (if the client makes additional changes after the design is set). All direct costs will be billed directly by the supplier or contractor. Aloysius does not include a separate overhead rate in these more complex jobs. The client's more complex job includes the following wark: a remodeled kitchen, two remodeled bathrooms, and a contractor to pull together all of the pieces (Aloysius estimates 20 hours of his own time to coordinate with the contractor). Aloysius billed $600 to his design-only client for the 20 -hour project initially described, using his flat rate of $30 per hour. Since the $30 rate covers both labor and overhead, how much does he estimate for his hourly overhead rate? Attempts: unlimited For the more complex job. Aloysius typically estimates one design change for each room designed. How much will Aloysius's bic be to this client? Total bid Both of the above jobs involved three spaces to be designed. How different were Aloysius's charges to the two clients
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