Landscape Architects provides landscape consulting services to clients that range from small businesses to large corporations. The budgeted rate charged to customers for consulting per hour is $100. The budgeted overhead for customer-support costs per hour is $45 and the budgeted other direct-cost pool rate is $25 per hour. The budgeted hourly rates charged to jobs are $30 for the architect and $15 for the assistants.
Jobs 200 and 201 for Sheridan College incurred 90 and 240 hours-respectively. Each job included one licensed architect and two assistants. The architect worked 12 hours on Job 200 and 60 hours on Job 201.
Required:
a. Identify the cost objects.
b. Determine the costs of each job using budgeted overhead rates.
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