Journalize the transactions in Sleeks general journal.

14. Simms 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 indirect cost allocation rate, computed as a percentage of direct

labor costs. At the beginning of 2011, managing partner Debra Simms prepared the

following budget for the year:

Maynard Manufacturing, Inc., is inviting several consultants to bid for work. Debra

Simms estimates that this job will require about 260 direct labor hours.

Requirements

R1. Compute Simms Realtors (a) hourly direct labor cost rate and (b) indirect cost

allocation rate.

R2. Compute the predicted cost of the Maynard Manufacturing job.

R3. If Simms wants to earn a profit that equals 55% of the jobs cost, how much

should she bid for the Maynard Manufacturing job?