1.What are the pre-determined overhead rates (burden rates) for the years 2000 through 2003?Use Direct Labor Hours in the calculation. Show your work

2.What are the reported costs by each client for each of the years 2000 through 2003?In your calculations, assume that the average hourly operator wages in 2000-2003 is $25 per operator hour indirect OH cost per hour.Include indirect costs by client by year using the burden rates calculated in #1, and add direct costs.

3.What are the reported profits by client for the years 2000 through 2003?

4.Provide an assessment of overhead costs to be either fixed, variable, or semi variable.This should be used to support your answer on #5.

5.Building from analysis in #4, describe what you think would happen to Purdy's profits (both by client and in total) if the firm decides to drop Mason as a client in 2003. Provide a comparison of overhead cost with and without Mason as a client. Also, provide analysis of sales, costs, and profit with and without Mason.

6.If you were Cal Purdy, then how aggressively would you bid on Mason's contract?Provide a three sentence explanation supporting your conclusion with the answers from the previous questions.

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2000 2003 Annual Budgets ($000) Account 2000 2001 2002 2003 Revenue Carlin Software S 2,170 $ 2,380 $ 2,520 $ 2,590 Gunn Computers S 2,555 $ 2,828 $ 3,075 $ 3,178 Krag Wireless $ 5,120 $ 5,760 $ 6,080 $ 6,720 Mason Graphics $ 3,885 $ 4,440 $ 4,810 $ 5,550 Smith Electronics $ 4,560 $ 4,024 S S - Total Revenue S 18,290 $ 19,432 $ 16,485 $ 18,038 Operator Wages (includes training) Carlin Software $ 620 $ 680 Gunn Computers $ 655 $ 725 Krag Wireless $ 1,500 $ 1,600 Mason Graphics $ 1,050 $ 1,200 Smith Electronics $ 1,200 $ 1,059 SSSSS 720 S 740 750 S 775 $ 1,800 $ 2,000 $ 1,300 $ 1,500 - S Total Operator Wages $ 5,025 $ 5,264 $ 4,570 $ 5,015 Overhead Operator Benefits $ 1,708 $ 1,821 $ 1,557 $ 1,705 Operator Overtime $ 769 $ 820 S 701 S 767 Unused Operator Time $ $ - $ 530 S Support staff wages $ 1,400 $ 1,606 $ 1,475 $ 1,490 Support staff benefits $ 683 $ 728 S 691 S 710 Managerial Salaries $ 1,525 $ 1,750 $ 1,750 $ 2,010 Managerial Benefits $ 513 $ 625 S 625 S 650 Depreciation Equipment $ 1,750 $ 1,850 $ 1,950 $ 2,050 Depreciation and property taxes building. Communications Supplies Utilities Miscellaneous Total Overhead Call Center Profit SSSSS 850 325 225 300 50 SSSSS 850 S 850 S 850 350 S 300 S 350 235 S 200 S 225 315 S 320 S 325 55 S 60 S 65 10,098 $ 11,005 $ 11,009 $ 11,197 2,917 $ 2,863 706 $ 1,526 Budgeted Operator Hours (000) 200 215 180 200 2000 2003 Annual Budgets ($000) Account 2000 2001 2002 2003 Revenue Carlin Software S 2,170 $ 2,380 $ 2,520 $ 2,590 Gunn Computers S 2,555 $ 2,828 $ 3,075 $ 3,178 Krag Wireless $ 5,120 $ 5,760 $ 6,080 $ 6,720 Mason Graphics $ 3,885 $ 4,440 $ 4,810 $ 5,550 Smith Electronics $ 4,560 $ 4,024 S S - Total Revenue S 18,290 $ 19,432 $ 16,485 $ 18,038 Operator Wages (includes training) Carlin Software $ 620 $ 680 Gunn Computers $ 655 $ 725 Krag Wireless $ 1,500 $ 1,600 Mason Graphics $ 1,050 $ 1,200 Smith Electronics $ 1,200 $ 1,059 SSSSS 720 S 740 750 S 775 $ 1,800 $ 2,000 $ 1,300 $ 1,500 - S Total Operator Wages $ 5,025 $ 5,264 $ 4,570 $ 5,015 Overhead Operator Benefits $ 1,708 $ 1,821 $ 1,557 $ 1,705 Operator Overtime $ 769 $ 820 S 701 S 767 Unused Operator Time $ $ - $ 530 S Support staff wages $ 1,400 $ 1,606 $ 1,475 $ 1,490 Support staff benefits $ 683 $ 728 S 691 S 710 Managerial Salaries $ 1,525 $ 1,750 $ 1,750 $ 2,010 Managerial Benefits $ 513 $ 625 S 625 S 650 Depreciation Equipment $ 1,750 $ 1,850 $ 1,950 $ 2,050 Depreciation and property taxes building. Communications Supplies Utilities Miscellaneous Total Overhead Call Center Profit SSSSS 850 325 225 300 50 SSSSS 850 S 850 S 850 350 S 300 S 350 235 S 200 S 225 315 S 320 S 325 55 S 60 S 65 10,098 $ 11,005 $ 11,009 $ 11,197 2,917 $ 2,863 706 $ 1,526 Budgeted Operator Hours (000) 200 215 180 200