60.1K

Verified Solution

Link Copied!

Budgeted breakdown of professional labour for the job - X Professional Labour Category Budgeted Rate per Hour Budgeted Hours Director Partner Associate Assistant $ 198 4 101 17 49 42 36 153 Print Done Condensed budget Revenues Total costs: Direct costs Professional labour $ 5,312,500 Indirect costs Client support Operating income $ 21,250,000 13,600,000 18,912,500 $ 2,337,500 Print Done - Jelliff Partners, a management consulting firm, has the following condensed budget for the year: (Click the icon to view the condensed budget.) Jelliff has a single direct-cost category (professional labour) and a single indirect-cost pool (client support). Indirect costs are allocated to jobs on the basis of professional labour costs. Required Calculate the markup rate as a percentage of professional labour costs. Determine the formula, and then compute the budgeted indirect-cost rate for Jelliff Partners. (Round the percentage to the nearest hundredth percent, X.XX%.) Budgeted indirect-cost rate % Jelliff Partners, a management consulting firm, has the following condensed budget for the year: (Click the icon to view the condensed budget.) Jelliff has a single direct-cost category (professional labour) and a single indirect-cost pool (client support). Indirect costs are allocated to jobs on the basis of professional labour costs. Required Requirement 2. The markup rate for pricing jobs is intended to produce operating income equal to 11% of revenues. Calculate the markup rate as a percentage of professional labour costs. Determine the formula, and then compute the markup rate as a percentage of professional labour costs. (Round the percentage to the nearest hundredth percent, X.XX%.) (Budgeted client support costs 13,600,000 Budgeted professional labour costs 5,312,500 )= Markup rate = 2.56 % Requirement 3. Jelliff is bidding on a consulting job for Warden Wireless, a wireless communications company. They have completed a budgeted breakdown of professional labour for the job. Calculate the budgeted cost of the Warden Wireless job. How much will Jelliff bid for the job if it is to earn its target operating income of 11% of revenues? Budgeted professional labour costs Budgeted consulting support costs Budgeted total costs (Round your answer to the nearest cent.) Jelliff will need to bid $ for the job if it is to earn its target operating income of 11% of revenues

Answer & Explanation Solved by verified expert

See Answer