| 1. | Compute Skylark Design's direct labor rate and its predetermined overhead allocation rate for 2024. |
| 2. | Compute the total cost of each job. |
| 3. | If Delough wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? |
| 4. | Why does Skylark Design assign costs to jobs?  |
Skylark Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing system in which each client is a different job. Skylark Design assigns direct labor, licensing costs, and travel costs directly to each job. It allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs At the beginning of 2024, managing partner Deb Delough prepared the following budget estimates: (Click the icon to view the prepared budget.) In November 2024, Skylark Design served several clients. Records for two clients appear here: (Click the icon to view the records for two clients.) Read the requirements. Requirement 1. Compute Skylark Design's direct labor rate and its predetermined overhead allocation rate for 2024. (Abbreviation used: OH = overhead.) Begin with the direct labor rate. Data Table - X - X Requirements Direct labor rate per hour Compute Skylark Design's predetermined overhead cost allocation rate for 2024. 8,000 hours = Predetermined OH cost allocation rate $ 1,600,000 193,000 Direct labor hours (professionals) Direct labor costs (professionals) Support staff salaries Computer leases Office supplies Office rent 1. Compute Skylark Design's direct labor rate and its predetermined overhead allocation rate for 2024. 2. Compute the total cost of each job. 3. If Delough wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? 4. Why does Skylark Design assign costs to jobs? % 41,000 Requirement 2. Compute the total cost of each job. First, enter the direct costs for each job. Then enter in the indirect costs and compute the total cost for each job. (Enter a "0" for any zero balances.) 23,000 63,000 Print Done Skylark Design, Inc. Estimated Cost of Food Place and White Chocolates Jobs Print Done White Food Place Chocolates Data Table Direct Costs hrs. * hrs. x Direct labor hours Food Place White Chocolates 800 hours 200 hours 2,500 $ 500 7,000 0 $ Software licensing costs Travel costs Total Direct Costs Allocated Indirect Costs: Print Done % x Skylark Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing system in which each client is a different job. Skylark Design assigns direct labor, licensing costs, and travel costs directly to each job. It allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs Read the requirements At the beginning of 2024, managing partner Deb Delough prepared the following budget estimates: (Click the icon to view the prepared budget.) In November 2024, Skylark Design served several clients. Records for two clients appear here: E: (Click the icon to view the records for two clients.) Requirement 2. Compute the total cost of each job. First, enter the direct costs for each job. Then enter in the indirect costs and compute the total cost for each job. (Enter a "0" for any zero balances.) X Data Table Requirements - X Skylark Design, Inc. Estimated Cost of Food Place and White Chocolates Jobs White Food Place Chocolates Direct labor hours (professionals) Direct labor costs (professionals) Support staff salaries Computer leases Office supplies 8,000 hours $ 1,600,000 193,000 41,000 23.000 1. Compute Skylark Design's direct labor rate and its predetermined overhead allocation rate for 2024. 2. Compute the total cost of each job. 3. If Delough wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? 4. Why does Skylark Design assign costs to jobs? Direct Costs hrs. x Office rent 63,000 hrs. x Print Done Print Done Total Direct Costs X Allocated Indirect Costs Data Table % Food Place White Chocolates Total Costs Direct labor hours 800 hours 200 hours Requirement 3. If Delough wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? Software licensing costs $ 500 2,500 $ 7,000 Food Place Travel costs 0 White Chocolates Requirement 4. Why does Skylark Design assign costs to jobs? Print Done Skylark Design assigns costs to jobs to help the company that cover all costs and contribute to profit. Assigning costs to also can help Skylark Design control costs
