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A local engineering firm is bidding on a design project for a new client. The total budgeted direct-labor costs for the firm are $800,000. The total budgeted indirect costs are $1,200,000. It is estimated that there are 16,000 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 500 hours?

A local engineering firm is bidding on a design project for a new client. The total budgeted direct-labor costs for the firm are $800,000. The total budgeted indirect costs are $1,200,000. It is estimated that there are 16,000 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 500 hours?

发布时间:2025-06-23 04:01:59
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答案:【计分规则】: a. $800,000/16,000 = $50/hour b. $1,200,000/$800,000 = 150% of direct labor cost c. (500 × 50) + (25,000 × 1.5) = $62,500
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