Question 7 (2 points) By applying the direct cost technique to the company budget, what is the overhead rate? (Use the following table to answer this question) CNW IR Account Table 1. Company and Profit Center Budgets Company CR $ % $ $ % $ 10,000,000.00 100.00% 6,000,000.00 100.00% 3,000,000.00 100.00% 1,000,000.00 100 297,500.00 Revenue (Earnings) Cost of Construction Labor Materials Sub Contracts Other Total Direct Cost 29 0 1,360,000.00 13.60% 535,500.00 3,145,000.00 31.45% 2,059,975.00 2,550,000.00 25.50% 2,550,000.00 170,000.00 1.70% 170,000.00 7,225,000.00 72.25% 5,315,475.00 8.93% 527,000.00 17.57% 34.33% 1,085,025.00 36.17% 42.50% 0.00% 2.83% 0.00% 88.59% 1,612,025.00 53.73% 0 0 29 297,500.00 27.75% 46.27% 70 Gross Profit Total Operating Expense Net Profit (Before Tax) 2,775,000.00 1,019,950.00 1,755,050.00 684,525.00 512,996.00 171,529.00 11.41% 1,387,975.00 385,242.00 2.86% 1,002,733.00 702,500.00 121,713.00 580,787.00 17.55% 33.42% 58 A) 12.63% B) 10.28% C) 16.88% D) 14.12%