Elite Consulting Ltd offers a range of immigration consulting services. The company's 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 Charge out rate for billing system

Visa application $300 per hour $630 per hour

Visa extension $75 per hour $350 per hour

AAT appeal $225 per hour $1000 per hour

The predetermined overhead rate is based on professional labour costs, which are budgeted to be

$663600 for the current year. The estimated overhead costs for the current year are budgeted to be:

Management salaries $850,000

Salaries of administration staff $285,000

Depreciation on IT hardware and software $240,000

Office supplies $2,250

Telecommunications $3,150

Insurance $150,000

Depreciation on office fixtures and fittings $11,250

Rent $100,000

Electricity $45,000

Council rates $23,300

During June the company provided three services, which consumed the following quantities of professional

labour (in hours):

Required:

Client Visa application Visa Extension AAT Appeal

Alfa 50 100 10

Beta 20 150 15

Gama 60 90 25

1) Calculate the predetermined overhead rate to be used at Elite Consulting Ltd.

2) Calculate the cost of the three services.

3) Assume Elite Consulting Ltd uses a billing system with the charge out rates shown above.

Calculate the client fees for each of the three services.