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McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows: Annual Salary Billable Hours Debbie $ 165,880 2,200 The accountant for McBride and Associates 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 percent markup. Tara $ 86,260 1,900 Required: 1. Compute the predetermined overhead rate. 2. Compute the hourly billing rates for Debble and Tara. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the predetermined overhead rate. Predetermined Overhead Rate % of Salary Cost Required 1 Required 2 >

McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows: Annual Salary Billable Hours Debbie $ 165,880 2,200 The accountant for McBride and Associates 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 percent markup. Tara $ 86,260 1,900 Required: 1. Compute the predetermined overhead rate. 2. Compute the hourly billing rates for Debble and Tara. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the predetermined overhead rate. Predetermined Overhead Rate % of Salary Cost Required 1 Required 2 >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows: Annual Salary Billable Hours Debbie $ 165,880 2,200 The accountant for McBride and Associates 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 percent markup. Tara $ 86,260 1,900 Required: 1. Compute the predetermined overhead rate. 2. Compute the hourly billing rates for Debbie and Tara. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the predetermined overhead rate. Predetermined Overhead Rate % of Salary Cost Required 1 Required 2 >
Transcribed Image Text:McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows: Annual Salary Billable Hours Debbie $ 165,880 2,200 The accountant for McBride and Associates 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 percent markup. Tara $ 86,260 1,900 Required: 1. Compute the predetermined overhead rate. 2. Compute the hourly billing rates for Debbie and Tara. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the predetermined overhead rate. Predetermined Overhead Rate % of Salary Cost Required 1 Required 2 >
McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows: Annual Salary Billable Hours Debbie $ 165,880 2,200 The accountant for McBride and Associates 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 percent markup. Required: 1. Compute the predetermined overhead rate. 2. Compute the hourly billing rates for Debbie and Tara. Tara $ 86,260 1,900 Complete this question by entering your answers in the tabs below. Billing Rate Required 1 Required 2 Compute the hourly billing rates for Debbie and Tara. Note: Do not round your intermediate calculations, and round your final answers to 2 decimal places. Debbie Tara < Required 1 Required 2 >
Transcribed Image Text:McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows: Annual Salary Billable Hours Debbie $ 165,880 2,200 The accountant for McBride and Associates 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 percent markup. Required: 1. Compute the predetermined overhead rate. 2. Compute the hourly billing rates for Debbie and Tara. Tara $ 86,260 1,900 Complete this question by entering your answers in the tabs below. Billing Rate Required 1 Required 2 Compute the hourly billing rates for Debbie and Tara. Note: Do not round your intermediate calculations, and round your final answers to 2 decimal places. Debbie Tara < Required 1 Required 2 >
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