Maynard Realtors a real estate consuting firm specializes in

Maynard Realtors, a real estate consuting firm, specializes in advising companies on potontal new plant sites. The company uses a job order cosing system with a predetermined averhead alocation at labor oosts. At the beginning of 2016, managing partner Lee Maynard prepared the following budget for the year (Cick the icon to view the prepared budget.) EE Chance Manufacturing, Inc. is initing Read the requirements Requirement 1. Compute Maynard Realtors\' (a) hourly dreat labor cost rate and (b) Begin with (a) hourly direct labor cost rate several consultants to bid for work. Lee Maynard wants to submit a bid. He osdtmates that this job will require about 180 direct labor hours 6 Data Table alloc Direct labor Direct labor hours (professionals) Direct labor costs (professionals) Office rent Support staff salaries Utabes 13,750 hours Estimated direct labor costs 2,200,000 Estimated direct labor hours $2,200,000 370,000 1,180,000 430,000 cost rate 13,750 S180 per hou Now compute Maynard Realtors\' (b) overhead allocaton rate allocation rabe Estimated total Indirect costsEstimated direct labor costs Print Done 2200000

Solution

Total indirect costs = 370000+1180000+430000= 1980000 Estimated total indirect costs/Estimated direct labor costs = Predetermined overhead allocation rate 1980000/2200000 = 90%