Question Help Root 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 direct labor costs. At the beginning of 2018, managing partner Kenneth Root prepared the following budget for the year. (Click the icon to view the prepared budget.) (Click the icon to view additional information.) Read the requirements Requirement 1. Compute Root Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate. Begin with (a) hourly direct labor cost rate. Data Table Direct labor hours (professionals) 23,600 hours Now compute Root Realtors' (b) predetermined overhead allocation rate Direct labor costs (professionals) $ 2,950,000 Office rent 360,000 Support staff salaries 1,147,500 Utilities 410,000 Requirement 2. Compute the predicted cost of the Jones Manufacturing Print Done Root Realtors Estimated Cost of the Jones Manufacturing Job hrs. * Question Help O Root 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 2018, managing partner Kenneth Root prepared the following budget for the year. (Click the icon to view the prepared budget.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Compute Root Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate. Begin with (a) hourly direct labor cost rato. Direct labor cost rate 1 = per hour Now compute Root Realtors' (b) predetermined overhead allocation rate. Predetermined overhead allocation rate % Requirement 2. Compute the predicted cost of the Jones Manufacturing job. Root Realtors Estimated Cost of the Jones Manufacturing Job hrs. Question Help Root 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 2018, managing partner Kenneth Root prepared the following budget for the year. (Click the icon to view the prepared budget.) (Click the icon to view additional information.) Read the requirements www. Predetermined overhead = allocation rate % Requirement 2. Compute the predicted cost of the Jones Manufacturing job. Root Realtors Estimated Cost of the Jones Manufacturing Job hrs. + % x Total predicted cost Requirement 3. If Root wants to earn a profit that equals 48% of the job's cost, how much should he bid for the Jones Manufacturing job? Add: Required service revenue
