The Chesapeake Legal Consulting Services, a legal consulting firm, specializes in advising companies on mergers and acquisitions. The firm uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs.

At the beginning of 2020, Mr. Smith, a legal associate, prepared the following budget for the year:

Direct labor hours (professionals)	$15,000 hours
Direct labor costs (professionals)	$3000,000
Office Rent	$300,000
Support Staff salaries	1,500,000
Utilities	$500,000

Tesla Motor Inc., is inviting several legal firms to bid for its planned new merger and acquisition project. Mr. Smith wants to submit a bid and estimates that this job will require about 250 labor hours.

Requirement:

1) Compute The Chesapeake Legal Consulting Services' hourly direct labor cost rate and its predetermined overhead allocation rate?

2) Compute the predicted cost of the Tesla Motor Inc.

3) If Mr. Smith wants to earn a profit that equals 20% of the consulting job's cost, how much should he bid for the Tesla Motor Inc's job