Optimum Health Incorporated provides diet, fitness, and nutrition services to clients who want a healthier ifestyle. The company customizes a program for each cient based on their Individual goals that includes diet recommendations (prepackaged food and supplements), nutrition counseling and guided fitness (personal training). The company uses a modified job order cost system that keeps track of the cost of the food, vitamins, and nutritonal supplements the company provides to each client, as well as the amount of time nutrition and fithess consultants spend with each clent: Optimum applies all indirect operating costs (e.g rent, utilites, and management salaries) as a percentage of the consuitent's labor cost: During the most recent yeat, the firm estimated thatit would pay $220,000 to its consultants and incur indirect operating costs of $330,000 Actual consultant lobor costs were $235,000 and actual indirect operating costs were $320,000. The cost records for three of Optimum's clients are summarized below: Required: 1. Compute the predetermined ovethead rate 2. Determine the total cost of serving each client 3. Assume the company charges cients an up-tiont fee of $420. Food and nutritional supplements are priced at 20 percent above cost Clents are charged $46 per hout for consulting services (both nutrition counseling and personal training). Determine the profitability of each cilent: Complete this question by entering your answers in the tabs below. Compute the predetermined overhead rate. Optimum Health Incorporated provides diet, fitness, and nutrition services to clients who want a he customizes a program for each client based on their individual goals that includes diet recommenc supplements), nutrition counseling, and guided fitness (personal training). The company uses a mo keeps track of the cost of the food, vitamins, and nutritional supplements the company provides to of time nutrition and fitness consultants spend with each client. Optimum applies all indirect operat management salaries) as a percentage of the consultant's labor cost. During the most recent year, the firm estimated that it would pay $220,000 to its consultants and in $330,000. Actual consultant labor costs were $235,000 and actual indirect operating costs were $ of Optimum's clients are summarized below: Required: 1. Compute the predetermined overhead rate. 2. Determine the total cost of serving each client. 3. Assume the company charges clients an up-front fee of $420. Food and nutritional supplements a cost. Clients are charged $46 per hour for consulting services (both nutrition counseling and persc profitability of each client. Complete this question by entering your answers in the tabs below. Determine the total cost of serving each client. Optimum Health Incorporated provides diet, fitness, and nutrition services to clients who want a healthier ifestyle. The company customizes a program for each cient based on their Individual goals that includes diet recommendations (prepackaged food and supplements), nutrition counseling and guided fitness (personal training). The company uses a modified job order cost system that keeps track of the cost of the food, vitamins, and nutritonal supplements the company provides to each client, as well as the amount of time nutrition and fithess consultants spend with each clent: Optimum applies all indirect operating costs (e.g rent, utilites, and management salaries) as a percentage of the consuitent's labor cost: During the most recent yeat, the firm estimated thatit would pay $220,000 to its consultants and incur indirect operating costs of $330,000 Actual consultant lobor costs were $235,000 and actual indirect operating costs were $320,000. The cost records for three of Optimum's clients are summarized below: Required: 1. Compute the predetermined ovethead rate 2. Determine the total cost of serving each client 3. Assume the company charges cients an up-tiont fee of $420. Food and nutritional supplements are priced at 20 percent above cost Clents are charged $46 per hout for consulting services (both nutrition counseling and personal training). Determine the profitability of each cilent: Complete this question by entering your answers in the tabs below. Compute the predetermined overhead rate. Optimum Health Incorporated provides diet, fitness, and nutrition services to clients who want a he customizes a program for each client based on their individual goals that includes diet recommenc supplements), nutrition counseling, and guided fitness (personal training). The company uses a mo keeps track of the cost of the food, vitamins, and nutritional supplements the company provides to of time nutrition and fitness consultants spend with each client. Optimum applies all indirect operat management salaries) as a percentage of the consultant's labor cost. During the most recent year, the firm estimated that it would pay $220,000 to its consultants and in $330,000. Actual consultant labor costs were $235,000 and actual indirect operating costs were $ of Optimum's clients are summarized below: Required: 1. Compute the predetermined overhead rate. 2. Determine the total cost of serving each client. 3. Assume the company charges clients an up-front fee of $420. Food and nutritional supplements a cost. Clients are charged $46 per hour for consulting services (both nutrition counseling and persc profitability of each client. Complete this question by entering your answers in the tabs below. Determine the total cost of serving each client
