E1727 similar to Question Help a real estate consulting firm

E17-27 (similar to) Question Help a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order predetermined overhead allocation rate, computed as a percentage of drect labor following budget for the year costing system with a costs. At the beginning of 2016, managing partner Mathew Root prepared the (Click the icon to view the prepared budget) Jones Manufacturing, Inc, is inviting several consultants to bid for work. Mathew Root wants to submit a bid. He estimates that this job will require about 230 direct labor hours. Read the requirements Requirement 1. Compute Root Realtors\' (a) hourly direct labor cost rate and (b) predetermined oven Data Table Begin with (a) hourly direct labor cost rate Direct labor hours (professionals) 20,800 hours 2.800.000 Direct labor cost rate per h Direct labor costs (professionals) 350,000 60000 450.000 Office rent Support staff salaries Ublities Choose from any list or enter any number in the input fields and then click Check Answer Print Done Clear All remaining

Solution

Calculate hourly direct labour cost rate :

Direct labour cost	/	Direct labour hours	=	Direct labour cost rate
2600000	/	20800	=	125 per hour