Tropico Services is a landscaping firm located in greenland. The following costs were incurred in the firms contract to beautify the local hotels: Direct material $4 800 Professional labour $13 000 The firms budget for the year included the following estimates: Budgeted overhead $900 000 Budgeted professional labour $600 000 REQUIRED: Show ALL workings

1. Determine the annual budgeted overhead rate that will be used to apply overhead to contracts, based on the professional labour cost.

5. Explain the key differences between this approach to estimating service fees and the method described in (3.) above.

. 6. Which method would you recommend for estimating client fees? Explain your answer.