Score: 0 of 2 pts 43 of 4 (2 complete)> HW Score: 20%, 2 of 10 pts E17-27 (simil

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Score: 0 of 2 pts 43 of 4 (2 complete)> HW Score: 20%, 2 of 10 pts E17-27 (similar to) EQuestion Help Juda Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2018, managing partner Sanjog Juda prepared the following budget for the year: EEB (Click the icon to view the prepared budget.) (Click the icon to view addioal nfomation.) Read the requirements Requirement 1. Compute Juda Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate. Begin with (a) hourly direct labor cost rate. Direct labor cost rate per hour

Explanation / Answer

Req 1: Estimated labour cost / Estimated labour hours = Direct Labor cost per hour 2,300,000 20000 115 Pre-determined OH rate Total Overheads    / Direct labour cost *100    = Pre-determined OH rate 1955000 2300000 85% of DLC Req 2: Estimated Cost of Job: Direct labour hours 200 Labour cost per hour 115 Direct labour cost 23000 Add: OH @ 85% of DLC 19550 Total cost of Job 42550 Req 3 Total cost of Job 42550 Add: Markup @ 36% of cost 15318 Bid price 57868

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