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White Consulting, a real estate consulting firm, specializes in advising companies on potential new plant sites. The firm uses a job cost system with a
White Consulting, a real estate consulting firm, specializes in advising companies on potential new plant sites. The firm uses a job cost system with a predetermined indirect cost allocation rate computed as a percentage of expected direct lat costs. At the beginning of the year, managing partner Sandy White prepared the following plan, or budget, for the year: E (Click the icon to view the prepared budget.) Requirements Read the requirements. Requirement 1 a. Compute White Consulting's hourly direct labor cost rate. (Round your answer to the nearest whole dollar.) 1. Compute White Consulting's (a) hourly direct labor cost rate and (b) indirect cost allocation rate. 2. Compute the predicted cost of the Root Resources job. 3. If White Consulting wants to earn a profit that equals 25% of the job's cost, how much should the company bid for the Root Resources job? Direct labor costs Direct labor hours Direct labor rate 147 2,350,000 16,000 per hour Requirement 1 b. Compute White Consulting's indirect cost allocation rate. (Round your answer to the nearest whole number.) Total indirect costs Direct labor costs Predetermined indirect cost allocation rate 66 % 1,540,000 2,350,000 Print Done Requirement 2. Compute the predicted cost of the Root Resources job. Enter the direct labor and the indirect costs for the Root Resources, then calculate the total predicted cost for the job. (Enter percentage amount as a whole number. Round interim calculations and final answers to the nearest whole dollar.) White Consulting Estimated Cost of the Root Manufacturing Job Data Table Direct labor hr. x 147 Indirect costs % x Total Predicted Cost Direct labor hours (professionals) .... 16,000 hours Direct labor costs (professionals) $ 2,350,000 Office rent. $ 290,000 Support staff salaries $ 940,000 Utilities .. $ 310,000 Root Resources is inviting several consulting firms to bid for work. White estimates that this job will require about 210 direct labor hours
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