onsulting, a real estate consulting firm, specializes in advising companies on potential new plant sites. The firm uses a job cost system with a predetermined indirect cost allocation rate computed as a percentage of expected direct labor costs. At the beginning of the year, managing partner

EvanEvan

JonesJones

prepared the following plan, or budget, for the year:

LOADING...

(Click the icon to view the prepared budget.)Read the requirements

LOADING...

.Requirement 1 a. Compute

JonesJones

Consulting's hourly direct labor cost rate. (Round your answer to the nearest whole dollar.)

	Direct labor costs	/	Direct labor hours	=	Direct labor rate
	$2,350,000	/	16,000	=	$147	/hour

Requirement 1 b. Compute

JonesJones

Consulting's indirect cost allocation rate. (Round your answer to the nearest whole number.)

	Total indirect costs	/	Direct labor costs	=	Predetermined indirect cost allocation rate
	1,420,000	/	2,350,000	=	60	%

Requirement 2. Compute the predicted cost of the

WhiteWhite

Resources job.Enter the direct labor and the indirect costs for the

WhiteWhite

Resources, then calculate the total predicted cost for the job. (Enter percentage amount as a whole number. Round interim calculations and final answers to the nearest whole dollar.)

Jones Consulting
Estimated Cost of the White Manufacturing Job
Direct labor	220	hr. x	$147	$32,340
Indirect costs	60	% x	$32,340	19,404
Total Predicted Cost				$51,744

Requirement 3. If

JonesJones

Consulting wants to earn a profit that equals

35%

of the job's cost, how much should the company bid for the

WhiteWhite

Resources job? (Round your answers to the nearest whole dollar.)

Required service revenue:

Clear All

Check Answer

Data Table

Direct labor hours (professionals). . . . .	16,000 hours
Direct labor costs (professionals). . . . .	$2,350,000
Office rent. . . . . . . . . . . . . . . . . . . . . . . . .	$200,000
Support staff salaries. . . . . . . . . . . . . . . .	$930,000
Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . .	$290,000

WhiteWhite

Resources is inviting several consulting firms to bid for work.

JonesJones

estimates that this job will require about

220220

direct labor hours.

Requirement 2. Compute the predicted cost of the

WhiteWhite

Resources job.

Enter the direct labor and the indirect costs for the

WhiteWhite

Resources, then calculate the total predicted cost for the job. (Enter percentage amount as a whole number. Round interim calculations and final answers to the nearest whole dollar.)

Jones Consulting
Estimated Cost of the White Manufacturing Job
Direct labor	220	hr. x	$147	$32,340
Indirect costs	60	% x	$32,340	19,404
Total Predicted Cost				$51,744

Requirement 3. If JonesJones

Consulting wants to earn a profit that equals

35%

of the job's cost, how much should the company bid for the

White Resources job? (Round your answers to the nearest whole dollar.)

Required service revenue: