Author Question: James Ford an architect charges $150 per hour for his time spent drawing blueprints for clients. His ... (Read 104 times)

ereecah · **on:** Mar 6, 2021

James Ford an architect charges $150 per hour for his time spent drawing blueprints for clients. His budgeted annual cost to run his office is $12,000 a year (rent and utilities) and he allocates these indirect costs based on direct labor hours. Ford predicts that he will work about 1,000 billable hours per year for his clients. Recently, Ford completed a set of blueprints for a garage for one of his clients and involving 30 hours of work, How much indirect costs should ford allocate to the garage blueprints job when considering how much to charge his client and cover his costs?
◦ $450
◦ $810
◦ $360
◦ $330

medine · **Reply #1 on:** Mar 6, 2021

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