P20-6B Banner.com is an Internet advertising agency. The firm uses a job cost system in which each client is a different "job." Banner.com traces direct labor, software licensing costs, and travel costs directly to each job (client). The company allocates indirect costs to jobs based on a predetermined indirect cost allocation rate, computed as a percentage of direct labor costs. get: At the beginning of 20X3, managing partner Michael Egan prepared the following bud- Direct labor hours (professional). Direct labor costs (professional) Support staff salaries. Rent and utilities. Supplies....... Leased computer hardware 20,000 hours $1,500,000 365,000 124,000 16,000 320,000 In January 20X3. Banner.com served several clients. Records for two clients appear here: Renolds Tennis and Golf Resort Malaysia Cuisine Direct labor hours Travel costs.... 320 hours 24 hours Software licensing costs. $1.250 $150 6.000 Required 1. Compute Banner.com's predetermined indirect cost allocation rate for 20X3. 2. Compute the total cost of each job. 3. II Banner.com wants to earn profits equal to 20% of sales revenue, how much (what total fee) should it charge each of these two clients? 4. Why does Banner.com assign costs to jobs?