1. What are the pre-determined overhead rates (burden rates) for the years 2000 through 2003? Use Direct Labor Hours in the calculation. Show your work
2. What are the reported costs by each client for each of the years 2000 through 2003? In your calculations, assume that the average hourly operator wages in 2000-2003 are $25 per operator hour indirect OH cost per hour. Include indirect costs by the client by year using the burden rates calculated in #1, and add direct costs.
3. What are the reported profits by the client for the years 2000 through 2003?
4. Provide an assessment of overhead costs to be either fixed, variable, or semi-variable. This should be used to support your answer on #5.
5. Building from an analysis in #4, describe what you think would happen to Purdys profits (both by the client and in total) if the firm decides to drop Mason as a client in 2003. Provide a comparison of overhead costs with and without Mason as a client. Also, provide analysis of sales, costs, and profit with and without Mason.
6. If you were Cal Purdy, then how aggressively would you bid on Masons contract? Provide a three-sentence explanation supporting your conclusion with the answers from the previous questions.

2000 - 2003 Annual Budgets ($000) Account 2000 2001 2002 2003 Revenue Carlin Software Gunn Computers Krag Wireless Mason Graphics Smith Electronics ololololo 2,170 2,555 5,120 3,885 4,560 $ 2,380 $ 2,828 $ 5,760 $ 4,440 $ 4,024 $ 2,520 $ 3,075 $ 6,080 $ 4,810 $ 2,590 $ 3,178 $ 6,720 $ 5,550 $ Total Revenue $ 18,290 $ 19,432 $ 16,485 $ 18,038 Operator Wages (includes training) Carlin Software Gunn Computers Krag Wireless Mason Graphics Smith Electronics $ $ $ $ $ 620 655 1,500 1,050 1,200 $ 680 $ 725 $ 1,600 $ 1,200 $ 1,059 $ 720 $ 750 $ 1,800 $ 1,300 $ $ 740 $ 775 $ 2,000 $ 1,500 $ Total Operator Wages $ 5,025 $ 5,264 $ 4,570 $ 5,015 Overhead 1,708 769 Operator Benefits Operator Overtime Unused Operator Time Support staff wages Support staff benefits Managerial Salaries Managerial Benefits Depreciation Equipment Depreciation and property taxes building. Communications Supplies Utilities Miscellaneous $ $ $ $ $ $ $ $ 1,400 683 1,525 513 1,750 $ 1,821 $ 1,557 $ 1,705 $ 820 $ 701 $ 767 $ $ 530 $ $ 1,606 $ 1,475 $ 1,490 $ 728 $ 691 $ 710 $ 1,750 $ 1,750 $ 2,010 $ 625 $ 625 $ 650 $ 1,850 $ 1,950 $ 2,050 $ $ $ $ $ 850 325 225 300 50 $ $ $ $ $ 850 350 235 315 55 $ $ $ $ 850 300 200 320 60 $ $ $ $ $ 850 350 225 325 65 Total Overhead $ 10,098 $ 11,005 $ 11,009 $ 11,197 Call Center Profit $ 2,917 $ 2,863 $ 706 $ 1,526 Budgeted Operator Hours (000) 200 215 180 200