Bairstow Consulting Ltd offers a range of IT consulting services. The companys service costing system estimates the cost of each consulting job by accumulating costs of the professional labour that works on the job plus a charge for overhead. The cost of professional labour is charged to jobs using the following three rates:

	Cost per hour	Chargeout rate for billing system
IT trainee	$30 per hour	$130 per hour
IT graduate	$75 per hour	$350 per hour
IT senior consultant	$225 per hour	$1000 per hour

The predetermined overhead rate is based on professional labour cost, which are budgeted to be $663600 for the current year. The estimated overhead costs for the current year are budgeted to be:

Management salaries $735000

Salaries of clerical and reception staff 285000

Depreciation on IT hardware and software 240000

Stationery 22500

Telecommunications 31500

Insurance 180000

Depreciation on office fixtures and fittings 11250

Rent 90750

Electricity 39525

Council rates 23475

During June the company provided three services, which consumed the following quantities of professional labour(in hours):

Client	IT trainee	IT graduate	Senior consultant
Robinsons	50	100	15
Smith and Son	20	140	10
Snowman Services	70	80	20

Required:

1. Calculate the predetermined overhead rate to be used at Bairstow Consulting.
2. Calculate the cost of the three services.
3. Assume Bairstow Consulting uses a billing system with the chargeout rates shown above. Calculate the client fees for each of the three services.