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?

Question

Quizplus · Accepted Answer

The Answer of 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?

Ruby Corp Is Bidding on a Design Project for a New