Reference no: EM132634438
Question 1. What are the pre-determined overhead rates (burden rates) for the years 2000 through 2003? Use Direct Labor Hours in the calculation. Show your work
Question 2. What are the reported costs by each client for each of the years 2000 through 2003? In your calculations, assume that the average hourly operator wages in 2000-2003 is $25 per operator hour indirect OH cost per hour. Include indirect costs by client by year using the burden rates calculated in #1, and add direct costs.
Question 3. What are the reported profits by client for the years 2000 through 2003?
Question 4. Provide an assessment of overhead costs to be either fixed, variable, or semi variable. This should be used to support your answer on #5.
Question 5. Building from analysis in #4, describe what you think would happen to Purdy's profits (both by client and in total) if the firm decides to drop Mason as a client in 2003. Provide a comparison of overhead cost with and without Mason as a client. Also, provide analysis of sales, costs, and profit with and without Mason.
Question 6. If you were Cal Purdy, then how aggressively would you bid on Mason's contract? Provide a three sentence explanation supporting your conclusion with the answers from the previous questions.
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