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If Dean wants to earn profits equal to 25% of sales revenue, what fee should it charge each of these two clients? (Round your answers
If Dean wants to earn profits equal to 25% of sales revenue, what fee should it charge each of these two clients? (Round your answers to the nearest whole dollar.)
Total Cost / (100% - 25%) = Revenue
Please explain how you got the answer by showing the work so I can learn.
Dean Consulting uses a job order costing system in which each client is a different job. Dean assigns direct labor, meal per diem, and travel costs directly to each job. It allocate indirect costs to jabs based on a predetermined overhead alacation rate, computed as a percentage of direct labor costs. At the beginning of 2018 the controller prepared the following budget BEE (Click the icon to view the prepared budget.) In November 2018, Dean served several clients. Records for two clients appear here EE Click the icon to view the records for two clients Read the requirements. Maya's Trent's Data Table Direct Costs Data Table Direct labo 780 hrs. x S 25 97,500 Direct labor hours (professionals) 6,600 hours 50 hrs. x 25 8,750 Trent's Trains Maya's Cookies Direct labor costs (professionals) S 825,000 Meal per diem support staff salaries 97,500 2,800 150 hours Direct labor hours 780 hours Computer leases 46,000 4,000 Travel costs Meal per diem 2,800 20,500 14,000 Office supplies 114.300 Total Direct Costs Travel costs Office rent 35,000 Allocated Indirect Costs 24 x 97,50 23,400 Print Done 4.500 24 x 8,75 Done Total Cost 37,700 23,600 Requirement 3. If Dean wants to earn profits equal to 25% of sales revenue, what fee should it charge each of these two clients? (Round your answers to the nearest whole dollar) Trent's Trains: Mayas Cookies Dean Consulting uses a job order costing system in which each client is a different job. Dean assigns direct labor, meal per diem, and travel costs directly to each job. It allocate indirect costs to jabs based on a predetermined overhead alacation rate, computed as a percentage of direct labor costs. At the beginning of 2018 the controller prepared the following budget BEE (Click the icon to view the prepared budget.) In November 2018, Dean served several clients. Records for two clients appear here EE Click the icon to view the records for two clients Read the requirements. Maya's Trent's Data Table Direct Costs Data Table Direct labo 780 hrs. x S 25 97,500 Direct labor hours (professionals) 6,600 hours 50 hrs. x 25 8,750 Trent's Trains Maya's Cookies Direct labor costs (professionals) S 825,000 Meal per diem support staff salaries 97,500 2,800 150 hours Direct labor hours 780 hours Computer leases 46,000 4,000 Travel costs Meal per diem 2,800 20,500 14,000 Office supplies 114.300 Total Direct Costs Travel costs Office rent 35,000 Allocated Indirect Costs 24 x 97,50 23,400 Print Done 4.500 24 x 8,75 Done Total Cost 37,700 23,600 Requirement 3. If Dean wants to earn profits equal to 25% of sales revenue, what fee should it charge each of these two clients? (Round your answers to the nearest whole dollar) Trent's Trains: Mayas CookiesStep by Step Solution
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