Job costing, consulting firm. Turner & Associates, a consulting firm, has the following condensed budget for 2011:

Turner has a single direct-cost category (professional labor) and a single indirect-cost pool (client support). Indirect costs are allocated to jobs on the basis of professional labor costs.Required1. Prepare an overview diagram of the job-costing system. Calculate the 2011 budgeted indirect-cost rate for Turner & Associates.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 labor costs.3. Turner is bidding on a consulting job for Tasty Chicken, a fast-food chain specializing in poultry meats. The budgeted breakdown of professional labor on the job is as follows:

Calculate the budgeted cost of the Tasty Chicken job. How much will Turner bid for the job if it is to earn its target operating income of 11% of revenues?

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Revenues Total costs: Direct costs Professional Labor Indirect costs Client support Operating income $21,250,000 $ 5,312,500 13,600,000 18,912,500 $ 2,337,500