Answer:
1. Hourly Direct Labor Cost rate = Direct Labor cost / Direct Labor hours
Hourly Direct Labor Cost rate = 2,500,000 / 25,000
Hourly Direct Labor Cost rate = $100 per hour
<u>Computation of Indirect cost</u>
Office Rent                     $320,000
Support staff salaries    $1,260,000
Utilities                           <u>$420,000</u>
Total Indirect Costs      <u>$2,000,000</u>
Predetermined indirect cost allocation rate = = Total Estimated indirect cost / Total estimated direct labor cost  = 2,000,000 / 2,500,000  = 80% of Direct Cost
2.  Direct Labor            $25,000  (250 * 100)
Indirect Cost               <u>$20,000</u>  (25,000 * 80%)
Total Predicted cost   <u>$45,000</u>
 
3. Predicted cost                   $45,000
Desired Profit                       <u>$22,500</u> (50% of $45,000)
Required Service revenue  <u>$67,500</u>