1. Fairfax CPA Consultants, (FCC), LLC., firm uses a job costing system with a predetermined indirect cost allocation rate computed as a percentage of direct labor costs. The managing consultant prepared the following plan, or budget, for the year:

Direct labor hours (professionals).15,000 hours

Direct labor costs (professionals).$2,250,000

Office rent..$250,000

Support staff salaries..$310,000

The managing consultant estimated that this job will require about 250 direct labor hours.

Required:

• Compute FCCs hourly direct labor cost rate
• Compute FCCs indirect cost allocation rate
• Compute the predetermined cost for the job
• If FCC earns profit equal to 30% of total direct labor cost, what is the total cost of the job including profit?