The status of Budgeted Income and Expenses for Pink Consulting andTutorials for 2020 are presented below.  The 2016 Projected Income Statement for Consulting & Tutoring Rosa follows:

 Consulting & Tutoring Rosa
 Income Statement
 For the Projected Year 2020

 Revenues
 Consulting Fees $ 120,000
 Tutoring Fees 80,000
 Total Projected Revenues $ 200,000
 Direct Costs:
 Consulting Professional Expenses $ 70,000
 Tutoring Professional Expenses 40,000
 Total Direct Cost $ 110,000
 Indirect Costs:
 Consulting overhead $ 30,000
 Tutoring overhead 20,000
 Total Indirect Cost 50,000
 Total Direct & Indirect Costs 160,000
 Operating Income $ 40,000

 Consulting and Tutoring Rosa uses a system with two categories of direct costs and two categories of indirect costs, described above.  The costs are prorated to the jobs (Jobs) based on the two direct costs individually.
 Required:
 1. Determine the 2020 indirect cost rates for both business categories.
 2. Prepare the order cost system diagram.
 Two offers are received.  One for consulting identified as Job # 101C and another for tutoring identified as Job # 101T.  Information follows:

 Job # 101C Consulting Fees Budgeted Rate Per Hours Budgeted Hours
 Manager $ 65.00 8 hrs.
 Senior $ 40.00 15 hrs.
 Staff $ 15.00 30 hrs.

 Job # 101T Tutoring Fees Budgeted Rate Per Hours Budgeted Hours
 Teacher $ 30.00 15 hrs.
 Assistance $ 10.00 15 hrs.
 Supervisor $ 25.00 5 hrs.

 3. Calculate the budgeted cost for each of the Jobs, separately.
 4. If you want to maintain the level of earnings presented in the Income Statement.  How much should be the price of the offers individually for each Job?

Answer rating: 100% (QA)

2020 Indirect Cost Rates Job 101C Consulting 37 of Direct Cost Job 101T Tutoring 12 of Direct Cost J... View the full answer