McCormick's Ship Repair service is bidding on a project for a potential customer.The manager revealed that the total budgeted direct-labor costs for the firm are $700,000.The total budgeted indirect costs are $650,000.The manager estimates that there are a total of 8,000 billable hours.
Required:
a.What is the budgeted direct-labor cost rate in this new project?
b.What is the budgeted indirect-cost rate assuming direct-labor cost is the allocation base?
c.What should the manager bid on the project if the direct labor hours are estimated at 250 hours?

Question

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The Answer of McCormick's Ship Repair service is bidding on a project for a potential customer.The manager revealed that the total budgeted direct-labor costs for the firm are $700,000.The total budgeted indirect costs are $650,000.The manager estimates that there are a total of 8,000 billable hours.
Required:
a.What is the budgeted direct-labor cost rate in this new project?
b.What is the budgeted indirect-cost rate assuming direct-labor cost is the allocation base?
c.What should the manager bid on the project if the direct labor hours are estimated at 250 hours?

McCormick's Ship Repair Service Is Bidding on a Project for a Potential