The Red Mill Inn is in need of a new roof. A local contractor, Jack Hammer, has been asked to submit a bid to do the work. Jack measured the roof and determined he would need 50 cases of roofing material. The cost per case is $45. Jack also determined it would take a four-man crew four 8-hour work days to complete the job. Each worker is paid $18 per hour. Before the year began, Jack estimated his total overhead costs to be $156,000. He applies overhead to jobs based on the amount of direct labor hours the job takes. Jack estimated the total direct labor hours for the year to be 7,500 hours. a) What is Jack's predetermined overhead rate for the year? b) How much overhead was charged to the Red Mill Inn job? 17 c) What was the total cost of the Red Mill Inn job? DM DL OH Total Cost d) If Jack charges his customers an amount equal to 30% above his cost, what would his bid to replace the roof on the Red Mill Inn? B n e 7 100% - % % .00 123 Default (Ca. 11 - OBLEM 2 e Red Mill Inn anticipated catering 40 business breakfasts last year. Prior to the start of the year, e manager estimated the catering overhead costs to be as follows based on using 2 employees rning a wage rate of $10 per hour. DETAILS Transportation costs $ 1,320 10 miles per event @ $.55 per mile, + $1,100 fixed costs Food preparation 1,600 2 hours per employee per job Setup 600 .75 hour per employee per job Serving 1,600 2.0 hours per employee per job Cleanup 800 1.0 hour per employee per job Napkins, plastics, etc. _ 480 $12 per job $ 6,400 e Inn actually catered 38 business breakfasts last year and incurred the following costs. Transportation costs Food preparation Setup Serving Cleanup Napkins, etc. $ 1,280 1,490 680 1,420 770 430 $ 6,070 Prepare a flexible budget for the 38-event level of activity