Question

# Tibbs ​Realtors, a real estate consulting​ firm, specializes in advising companies on potential new plant sites....

Tibbs

​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

Peter

Tibbs

prepared the following budget for the​ year:

​(Click the icon to view the prepared​ budget.)

.Requirement 1. Compute

Tibbs

​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

Now compute

Tibbs

​Realtors' (b) predetermined overhead allocation rate.

/

=

allocation rate

/

=

%

Requirement 2. Compute the predicted cost of the

White

Manufacturing job.

 Tibbs Realtors Estimated Cost of the White Manufacturing Job hrs. x = + % x = Total predicted cost

Requirement 3. If

Tibbs

wants to earn a profit that equals

30​%

of the​ job's cost, how much should

he

bid for the

White

Manufacturing​ job?

Choose from any list or enter any number in the input fields and then continue to the next question.

 Direct labor hours (professionals) 17,500 hours Direct labor costs (professionals) \$2,800,000 Office rent 350,000 Support staff salaries 1,730,000 Utilities 440,000

 1) (a) Estimated Direct labor costs / Estimated Direct labor hours = Direct Labor Cost Rate \$ 2,800,000 / 17,500 hours = \$ 160 per Hour (b) Estimated overhead Costs / Estimated Direct labor costs = Predetermined Overhead allocation rate \$ 2,520,000 ( \$ 350,000 + \$ 1,730,000 + \$ 440,000 ) / \$ 2,800,000 = 90% of direct labor cost Direct Labor hours information is not provided in the given Question. So We acnnot Proceed to answer the remaing parts of the Question. 2) Particulars Amount (in \$ ) Direct labor Cost Indirect Costs Total Predicted Cost

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