During the most recent year, the firm estimated that it would pay $$280,000$ to its consultants and incur indirect operating costs of $$420,000.$ Actual consultant labor costs were $$295,000$ and actual indirect operating costs were $$410,000.$ The cost records for three of Optimum$$s clients are summarized below:

Judy Tom Elizabeth

Food and nutritional supplements $ $400$ $ $1,200$ $ $200$

Nutritional counseling $($$$12$ per hour$)120240144$

Personal fitness training $($$$17$ per hour$)340510680$

Indirect operating costs $???$

Required:

Compute the predetermined overhead rate.

Determine the total cost of serving each client.

Assume the company charges clients an up$-$front fee of $$480.$ Food and nutritional supplements are priced at $20$ percent above cost. Clients are charged $$33$ per hour for consulting services $($both nutrition counseling and personal training$).$ Determine the profitability of each client.