Homework-Chapter 19 and Obj 1 of chapter 24 Question 1 Chance Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2014, managing partner Peter Chance prepared the following budget for the year Direct labor hours (professionals) 19,600 hours $2,450,000 Direct labor costs (professionals) 300,000 Office rent Support staff salaries 1,515,000 Utilities 390,000 Peters Manufacturing, Inc. is inviting several consultants to bid for work. Peter Chance wants to submit a bid. He estimates that this job will require about 210 direct labor hours Requirements 1. Compute Chance Realtors' (a) hourly direct labor cost rate and (b) predetermined overhead allocation rate. 2. Compute the predicted cost of the Peters Manufacturing job 3. IfChance wants to earn a profit that equals 40 % of the job's cost, how much should he bid for the Peters Manufacturing job