Cost accounting

SADCO Consulting Firm has the following budget for 2021: Revenues $25,000,000 Direct costs 8,000,000 Indirect costs 14,000,000 Net Operating Income 3,000,000 SADCO has a single direct cost exemplified by professional consultants, which is taken as an allocation base. A markup of 14% is used for pricing the assigned job. SADCO bidding on a consulting job for Ajman University. The required professional consultation could be categorized as follows: Professional Category Budgeted Rate per Hour Budgeted Hours Category A $200 10 hours Category B 150 12 Category C 100 40 Category D 75 180 Required: (A) Compute the budgeted indirect cost rate. (B) How much will SADCO bid for the job? (C) What would be the case if the markup is taken as 10% of the revenue? Cost Accounting Equations 1- TMC - PC + CC 2- TMC = VC+ FC 3- TMC - COGS + Ending Inventory 4- Budgeting I.D.C.R = Budgeting IND. Costs / Budgeting Base 5- Actual I.D.C.R = Actual IND. Costs / Actual Base 6- Revenue = Cost Base + Makup (Base)