Jones 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 labo costs. At the beginning of 2018, managing partner Sandra Jones prepared the following budget for the year: D (Click the icon to view the prepared budget.) A (Click the icon to view additional information.) Read the requirements. Requirement 1. Compute Jones 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 i Estimated direct labor hours = cost rate 2,300,000 20,000 $ 115 per hour Now compute Jones Realtors' (b) predetermined overhead allocation rate. '= Estimated total indirect costs 1,955,000 Estimated direct labor costs 2,300,000 Predetermined overhead allocation rate 85 % | $ i Data Table Requirement 2. Compute the predicted cost of the Martinez Manufacturing job. Jones Realtors Estimated Cost of the Martinez Manufacturing Job Direct labor 20,000 hrs. 115 = 2,300,000 + Indirect costs 85%x 1,955,000 = 1,661,750| Total predicted cost 13,961,750 20,000 hours Direct labor hours (professionals) Direct labor costs (professionals) Office rent Support staff salaries Utilities $ 2,300,000 370,000 1,195,000 390,000 Print Done Jones 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 labo costs. At the beginning of 2018, managing partner Sandra Jones prepared the following budget for the year: D (Click the icon to view the prepared budget.) A (Click the icon to view additional information.) Read the requirements. Requirement 1. Compute Jones 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 i Estimated direct labor hours = cost rate 2,300,000 20,000 $ 115 per hour Now compute Jones Realtors' (b) predetermined overhead allocation rate. '= Estimated total indirect costs 1,955,000 Estimated direct labor costs 2,300,000 Predetermined overhead allocation rate 85 % | $ i Data Table Requirement 2. Compute the predicted cost of the Martinez Manufacturing job. Jones Realtors Estimated Cost of the Martinez Manufacturing Job Direct labor 20,000 hrs. 115 = 2,300,000 + Indirect costs 85%x 1,955,000 = 1,661,750| Total predicted cost 13,961,750 20,000 hours Direct labor hours (professionals) Direct labor costs (professionals) Office rent Support staff salaries Utilities $ 2,300,000 370,000 1,195,000 390,000 Print Done