Maynard

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

2024,

managing partner

Jennifer

Maynard

prepared the following budget for the year:

1(Click

the icon to view the prepared budget.)

2(Click

the icon to view additional information.)Read the

requirements3.

Requirement 1. Compute

Maynard

Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate.

Begin with (a) hourly direct labor cost rate.

				Direct labor
(1)		(2)	=	cost rate
			=		per hour

Now compute

Maynard

Realtors' (b) predetermined overhead allocation rate.

				Predetermined overhead
(3)		(4)	=	allocation rate
			=		%

Requirement 2. Compute the predicted cost of the

Juda

Manufacturing job.

	Maynard Realtors
	Estimated Cost of the Juda Manufacturing Job
	(5)
			hrs.		=
+	(6)
			%		=
	Total predicted cost

Requirement 3. If

Maynard

wants to earn a profit that equals

55%

of the job's cost, how much should

she

bid for the

Juda

Manufacturing job?

(7)
Add:	(8)
Required service revenue

1: Data Table

Direct labor hours (professionals)	22,000 hours
Direct labor costs (professionals)	$2,750,000
Office rent	400,000
Support staff salaries	1,645,000
Utilities	430,000

2: More Info

Juda

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

Jennifer

Maynard

wants to submit a bid.

She

estimates that this job will require about

240

direct labor hours.

3: Requirements

1.	Compute Maynard Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate.
2.	Compute the predicted cost of the Juda Manufacturing job.
3.	If Maynard wants to earn a profit that equals 55% of the job's cost, how much should she bid for the Juda Manufacturing job?

(1)

Estimated direct labor costs

Estimated direct labor hours

Estimated total indirect costs

(2)

Estimated direct labor costs

Estimated direct labor hours

Estimated total indirect costs

(3)

Estimated direct labor costs

Estimated direct labor hours

Estimated total indirect costs

(4)

Estimated direct labor costs

Estimated direct labor hours

Estimated total indirect costs

(5)

Direct labor

Indirect costs

Office rent

Support staff salaries

Utilities

(6)

Direct labor

Indirect costs

Office rent

Support staff salaries

Utilities

(7)

Desired profit

Direct labor cost

Indirect costs

Total predicted cost

(8)

Desired profit

Direct labor cost

Indirect costs

Total predicted cost