cost of the food, vitamins, and nutritional supplements the company provides to each client, as well as the amount of time nutrition and fitness consultants spend with each client. Optimum applies all indirect operating costs (e.g., rent, utilities, and management salaries) as a percentage of the consultant's labor cost. During the most recent year, the firm estimated that it would pay $240,000 to its consultants and incur indirect operating costs of $360,000. Actual consultant labor costs were $255,000 and actual indirect operating costs were $350,000. The cost records for three of Optimum's clients are summarized below: Food and nutritional supplements Nutritional counseling ($19 per hour) Personal fitness training ($24 per hour) Indirect operating costs Judy $ 600 190 480 ? Tom $1,100 380 720 ? Elizabeth $ 400 228 960 ? Required: 1. Compute the predetermined overhead rate. 2. Determine the total cost of serving each client. 3. Assume the company charges clients an up-front fee of $440. Food and nutritional supplements are priced at 25 percent above cost. Clients are charged $49 per hour for consulting services (both nutrition counseling and personal training). Determine the profitability of each client