Homework SourseS 1400S 2825 2000 SolutionSolution 1 Estimated payment to co
S 1400S 2.825 2.000
Solution
Solution 1:
Estimated payment to consultant = $100,000
Estimated indirect operating cost = $150,000
Overhead is recovered as a percentage to consultant\'s labor cost
Hence pre determined overhead recovery rate = $150,000/$100,000*100 = 150%
Solution 2:
Solution 3:
| Computation of cost of serving each client | |||
| Particulars | Judy | Tom | Elizabeth |
| Food and Nutritional Supplement (A) | $400.00 | $1,200.00 | $200.00 |
| Nutritional Counseling | $100.00 | $200.00 | $120.00 |
| Personal fitness training | $300.00 | $450.00 | $600.00 |
| Total consultant labor (Nutritional + Personal Fitness) (B) | $400.00 | $650.00 | $720.00 |
| Indirect operating cost (150% of B) ( C) | $600.00 | $975.00 | $1,080.00 |
| Total Cost (A+B+C) | $1,400.00 | $2,825.00 | $2,000.00 |
