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jerico jerico
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9 years ago
Ruby Corp is bidding on a design project for a new client.  The total budgeted direct-labor costs for the firm are $400,000. The total budgeted indirect costs are $800,000. It is estimated that there are 10,000 billable hours in total.

Required:
a.   What is the budgeted direct-labor cost rate?
b.   What is the budgeted indirect-cost rate assuming direct-labor cost is the allocation base?
c.   What should be the engineering firm bid on the project if the direct labor hours are estimated at 300 hours?
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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9 years ago
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jerico Author
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#2
9 years ago
Very happy to know people like you still exist. Really, without your help, I wouldn't understand the content one bit.
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9 years ago
Grinning Face
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#4
8 years ago Edited: 8 years ago, gero0151
Where are you getting 15,000 X 200%?
Post Merge: 8 years ago

Total Direct Costs = 300 hours X $40.00 per hour = $12,000
Total Indirect Costs = 200% of Direct Costs = (200% X $12,000) = $24,000
TOTAL COST = $12,000 + $24,000 = $36,000
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