Accounting – Morgan Morgan Company is a consulting firm

| January 30, 2017

Question
Morgan Morgan Company is a consulting firm. The firm expects to have $ 57 comma 600$57,600in indirect costs during the year and bill customers for 8 comma 0008,000hours. The cost of direct labor is $ 72$72per hour.

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16. Calculate the predetermined overhead allocation rate for MorganMorgan.
17. MorganMorgancompleted a consulting job for StanleyStanleyGulloGulloand billed the customer for 1919hours. What was the total cost of the consulting job?
18. If MorganMorganwants to earn a profit equal to 4040% of the cost of a job, how much should the company charge Mr. GulloGullo?

16. Calculate the predetermined overhead allocation rate for MorganMorgan.

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Predetermined overhead
Estimated billable costs /
= allocation rate
/ = per hour
17. MorganMorgancompleted a consulting job for StanleyStanleyGulloGulloand billed the customer for 1919hours. What was the total cost of the consultingjob?

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Morgan Company
Total Cost of the Gullo Job
hrs. x =
+
hrs x =
Total cost
18. If MorganMorganwants to earn a profit equal to 4040%of the cost of ajob, how much should the company charge Mr. GulloGullo?

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Add:
Required charge for job

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