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A local engineering firm is bidding on a design project for a new client. The total budgeted direct-labor costs for the firm are $600,000. The net budgeted indirect costs are $800,000. It is estimated that there are 10,000 billable hours in total. Required: a. Find the budgeted direct-labor cost rate? b. Find the budgeted indirect-cost rate assuming direct-labor cost is allocation base? c. Evaluate what should be the engineering firm bid on the project if the direct labor hours are estimated at 300 hours?
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Given base index and index at delivery, evaluation of adjusted contract price. Given the following contract information, calculate the adjusted contract price
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