1.	Compute Bluebird Design's predetermined indirect cost allocation rate for the current year.
2.	Compute the total cost of each of the two jobs listed.
3.	If Bluebird Design wants to earn profits equal to 20% of sales revenue, how much (what total fee) should the company charge each of these two clients?
4.	Why does Bluebird Design assign costs to jobs?

1.	Compute Bluebird Design's predetermined indirect cost allocation rate for the current year.
2.	Compute the total cost of each of the two jobs listed.
3.	If Bluebird Design wants to earn profits equal to 20% of sales revenue, how much (what total fee) should the company charge each of these two clients?
4.	Why does Bluebird Design assign costs to jobs?

Homework: Chapter 3 Homework Save Score: 2.63 of 5 pts 6 of 7 (6 complete) HW Score: 78.16%, 15.63 of 20 pts W P3-47A (similar to) 3 Question Help Bluebird Design is an interior design firm. The firm uses a job cost system in which each client is a different "job." Bluebird Design traces direct labor, licensing costs, and travel costs directly to each job (client). It allocates indirect costs to jobs based on a predetermined indirect cost allocation rate computed as a percentage of direct labor costs. At the beginning of the current year, managing partner MaryAlice Distasio prepared the following budget: (Click the icon to view the prepared budget.) Later that same year in November, Bluebird Design served several clients. Records for two clients appear here: (Click the icon to view the records for two clients.) Read the requirements. Estimated Cost of Food Place and StarNow.com Jobs Data Table Data Table Food Place StarNow.com 8,000 hours Direct Costs: Direct labor 730 hours x Direct labor hours (professional) Direct labor costs (professional) Support staff salaries $ Food Place StarNow.com $ 125 $ 91,250 1,000,000 80,000 730 hours 70 hours 70 hours x $ 125 $ 8,750 $ 46,000 Direct labor hours Licensing costs Travel costs $ 2,700 $ 350 Licensing costs 2,700 Computer lease payments.. Office supplies Office rent 350 $ 13,000 $ 0 Travel 13,000 0 25,000 49,000 Total Direct Costs $ 106,950 || $ 9,100 Print Done Indirect Costs: Print Done 20 % x 20% x Total Cost Enter any number in the edit fields and then click Check Answer. ? Homework: Chapter 3 Homework Save Score: 2.63 of 5 pts 6 of 7 (6 complete) HW Score: 78.16%, 15.63 of 20 pts W P3-47A (similar to) 3 Question Help Bluebird Design is an interior design firm. The firm uses a job cost system in which each client is a different "job." Bluebird Design traces direct labor, licensing costs, and travel costs directly to each job (client). It allocates indirect costs to jobs based on a predetermined indirect cost allocation rate computed as a percentage of direct labor costs. At the beginning of the current year, managing partner MaryAlice Distasio prepared the following budget: (Click the icon to view the prepared budget.) Later that same year in November, Bluebird Design served several clients. Records for two clients appear here: (Click the icon to view the records for two clients.) Read the requirements. Estimated Cost of Food Place and StarNow.com Jobs Data Table Data Table Food Place StarNow.com 8,000 hours Direct Costs: Direct labor 730 hours x Direct labor hours (professional) Direct labor costs (professional) Support staff salaries $ Food Place StarNow.com $ 125 $ 91,250 1,000,000 80,000 730 hours 70 hours 70 hours x $ 125 $ 8,750 $ 46,000 Direct labor hours Licensing costs Travel costs $ 2,700 $ 350 Licensing costs 2,700 Computer lease payments.. Office supplies Office rent 350 $ 13,000 $ 0 Travel 13,000 0 25,000 49,000 Total Direct Costs $ 106,950 || $ 9,100 Print Done Indirect Costs: Print Done 20 % x 20% x Total Cost Enter any number in the edit fields and then click Check