Elizabeth Flanigan and Associates is an engineering and design firm that specializes in developing plans for recycling p

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Elizabeth Flanigan and Associates is an engineering and design
firm that specializes in developing plans for recycling
plants for municipalities. The firm uses a job costing system to
accumulate the cost associated with each design project.
Flanigan employs three levels of employees: senior engineers,
associate engineers and clerical staff. The salary cost of
the senior engineers and the associate engineers is assigned to
each project as direct labor. The salary cost of the
clerical staff is included in overhead along with the cost of
engineering supplies, automobile travel and equipment
depreciation. The cost of airline travel, motels, building permits
and fees from other consultants is charged to each
project as direct materials. Overhead is applied to projects using
a predetermined overhead rate based on total
engineering hours. The rate for 202x is $6 per hour.
The six different salary levels for 202x for the employees of
Elizabeth Flanigan and Associates are listed below. The
hourly rate is determined by dividing the yearly salary by 2,000
hours per year.
The billings that are sent to the municipalities for engineering
services utilize cost-plus billing. Typically the total costs
accumulated for a project (direct materials, direct labor and
overhead) are multiplied by 150% to determine the amount
of the billing. The difference between the billed amount and the
accumulated cost is the “plus” on cost plus which also
represents profit.
During March 202x Flanigan accumulated the following information
related to Job 295 for Johnson Creek City.

Using the template provided complete Part a, Part b, Part c
Question 1 and Part c Question 2 - remember to include the
math used for calculated numbers.
Senior Engineer
Level 1: $44,000 per year ($22.00 per hour)
Lovel 2: $36,000 per year ($18.00 per hour)
Associate Engineer
Level 3: $28,000 per year ($14.00 per hour)
Level 4: $24,000 per year ($12.00 per hour)
Clerical Staff
Level 5: $16,000 per year ($8.00 per hour)
Level 6: $15,000 per year ($7.50 per hour)
Senior Engineer Hours
Level 1 52
Level 2 84
Associate Engineer Hours
Level 3 106
Level 4 44
Clerical Hours
Level 5 20
Level 6 66
Building Permits 1,200$
Airline Travel and Motel 755
Part a Calculate the amount that should be billed to Johnson
Creek City for March 20xx
**There may be more lines available than needed. Use what you need
and leave the others blank.
Feel free to add more lines if you feel you need them.
Be sure to identify what your numbers represent - do not just put
down numbers without an explanation as to what it represents
Direct Material: hint: for a service company DM would include
permits and travel expenses Provide calculations or the math used
in this column to support your answer
Total Direct Materials
Direct Labor Detail: list each direct labor title and the
cost
Total Direct Labor
Overhead Detail: list each item included in O/H and the cost
Total Overhead
TOTAL PROJECT COST
Cost - Plus PERCENTAGE
TOTAL AMOUNT BILLED TO CUSTOMER
Part b How much profit was earned on Job 295 - show your
calculation do not just put a number down.
Highlight your final answer.
Part c Question 1
The company would like to increase their projected profit by an
additional 7%. Based on this how much
will total project costs be? BE SURE TO INCLUDE THE CALCULATION
DETAIL IN YOUR RESPONSE - round
answer to nearest whole dollar . . . Label your numbers and
Highlight your final answer
Part c Question 2
Based on the projected profit increase how much will the total
amount billed be? BE SURE TO INCLUDE
THE CALCULATION DETAIL IN YOUR RESPONSE - round answer to nearest
whole dollar . . . Label your
numbers and final answer so I can see what the numbers
represent.