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I am stuck on a homework problem:A company employs two appraisers. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salary and billable hours of the two appraisers are estimated to be as follows.... DEBBIES ANNUAL SALARY=$165,880DEBBIES BILLABLE HOURS=2,200 TARAS ANNUAL SALARY=$86,260TARAS BILLABLE HOURS=1900The accountant for the company is computing the hourly rate that should be used to charge clients for Debbie's and Tara's services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 30% markup. 1.) COMPUTE THE PREDETERMINED OVERHEAD RATE 2.) COMPUTE THE HOURLY BILLING RATE FOR DEBBIE AND TARA

Question

I am stuck on a homework problem:

A company employs two appraisers. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salary and billable hours of the two appraisers are estimated to be as follows....

 

DEBBIES ANNUAL SALARY=$165,880

DEBBIES BILLABLE HOURS=2,200

 

TARAS ANNUAL SALARY=$86,260

TARAS BILLABLE HOURS=1900

The accountant for the company is computing the hourly rate that should be used to charge clients for Debbie's and Tara's services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 30% markup.

 

1.) COMPUTE THE PREDETERMINED OVERHEAD RATE 

2.) COMPUTE THE HOURLY BILLING RATE FOR DEBBIE AND TARA

 

 

 

check_circleAnswer
Step 1

1. Calculate the predetermined ove...

Predetermined
Estimated overhead
100
Debbies annual salary +
overhead rate
Taras annual salary
$378,210
- x100
($165.880 $ 86,260)
=150%
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Predetermined Estimated overhead 100 Debbies annual salary + overhead rate Taras annual salary $378,210 - x100 ($165.880 $ 86,260) =150%

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