|Engineer Co. is submitting a bid for a major job and estimates the following direct labor...

 

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|Engineer Co. is submitting a bid for a major job and estimates the following direct labor costs: Hours Hourly Rate Engineers Drafters 210 250.00 140 $ 120.00 350 $ 20.00 Staff Engineer Co. has no direct material costs and applies overhead at a rate of 150% of direct labor cost. It estimates the competition will bid between $223177.5 and $272772.5. a) What is the estimated cost of direct labor for the job? b) What is the estimated cost of the job(Labor & MOH)? c) What should it bid to earn a 30% profit on cost? |Engineer Co. is submitting a bid for a major job and estimates the following direct labor costs: Hours Hourly Rate Engineers Drafters 210 250.00 140 $ 120.00 350 $ 20.00 Staff Engineer Co. has no direct material costs and applies overhead at a rate of 150% of direct labor cost. It estimates the competition will bid between $223177.5 and $272772.5. a) What is the estimated cost of direct labor for the job? b) What is the estimated cost of the job(Labor & MOH)? c) What should it bid to earn a 30% profit on cost?

Answer rating: 100% (QA)

a To calculate the estimated cost of direct labor for the job we need to multiply the number of hour... View the full answer