An accounting firm, Shultz & Worsk, accumulates costs associated with individual cases using a job order cost system. For the upcoming year, the firm estimates that it will use 30,000 hours of direct labor for professional staff at an hourly rate of $150 per hour. Estimated total overhead costs are $900,000. The firm allocates overhead costs to individual client services on the basis of direct labor hours of its professional staff. What is the firm's predetermined overhead rate for the upcoming year?

Baskin promotions, inc. sells t-shirts decorated for a variety of concert performers. the company has developed the following budget for the coming year based on a sales forecast of 80,000 t-shirts: sales $ 1,400,000 cost of goods sold 820,000 gross profit 580,000 operating expenses ($100,000 is fixed) 418,400 operating income 161,600 income taxes (30% of operating income) 48,480 net income $ 113,120 cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. if the concert season is slow due to poor weather, baskin estimates that sales could fall to as low as 60,000 t-shirts. assume baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. a performance report would indicate that net income was: