How to solve...

Martinez 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 $2025,$ managing partner Peter Martinez prepared the following budget for the year:

View the prepared budget.

View additional information.

Read the requirements.

Requirement $1.$ Compute Martinez Realtors' $($a$)$ hourly direct labor cost rate and $($b$)$ predetermined overhead a

Begin with $($a$)$ hourly direct labor cost rate.

$\backslash$table$[[,$Estimated direct labor costs,$+,$Estimated direct labor hours,$=,,\backslash$table$[[$Direct labor$],[$cost rate$]]],[$$$,2,750,000,+,22,000,=,$$$,125$ per hour$]]$

Now compute Martinez Realtors' $($b$)$ predetermined overhead allocation rate.

$\backslash$table$[[$Estimated total indirect costs,$+,$Estimated direct labor costs,$=,\backslash$table$[[$Predetermined overhead$],[$allocation rate$]]],[,+$$$,2,750,000,=,\%$