Homework: Chapter 17 Homework Score: 0.92 of 1 pt 3 of 4 (4 complete) HW Score: 87 E17-27 (similar to) Martin Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costi predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2018, managing partner Kenneth M following budget for the year: (Click the icon to view the prepared budget.) i (Click the icon to view additional information.) Read the requirements. $ 2,475,000 $ 2,750,000 90 % Requirement 2. Compute the predicted cost of the Simms Manufacturing job. Martin Realtors Estimated Cost of the Simms Manufacturing Job Direct labor 240 hrs. x $ 125 $ 30,000 + Indirect costs 90 % x $ 30,000 $ 27,000 Total predicted cost 57,000 Requirement 3. If Martin wants to earn a profit that equals 55% of the job's cost, how much should he bid for the Simms Manufacturing job? Total predicted cost $ 57,000 Add: Desired profit 31,350 Required service revenue $ 88,350 This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers.Martin Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2018, managing partner Kenneth Martin prepared the following budget for the year: (Click the icon to view the prepared budget.) i (Click the icon to view additional information.) Read the requirements. Requirement 1. Compute Martin Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate. Begin with (a) hourly direct labor cost rate. Direct labor Estimated direct labor costs Estimated direct labor hours cost rate 2,750,000 22,000 $ 125 per hour Now compute Martin Realtors' (b) predetermined overhead allocation rate. Predetermined overhead Estimated total indirect costs Estimated direct labor costs allocation rate 2,475,000 $ 2,750,000 90% Requirement 2. Compute the predicted cost of the Simms Manufacturing job. Martin Realtors Estimated Cost of the Simms Manufacturing Job