Brooks Advertising

pays

Amanda Hilton

$102,600

per year. Assume that

Brooks'

advertising agents

are expected to work a total of

12,000

direct labor hours in

2024.

Brooks'

estimated total indirect costs are

$288,000

and the allocation base used is direct labor hours.Read the

requirements1.

Requirement 1. What is

Brooks'

predetermined overhead allocation rate?

(1)		(2)	=	Predetermined overhead allocation rate
			=

Requirement 2. What indirect costs will be allocated to Client 507 if

Amanda Hilton,

an

advertising agent

at

Brooks Advertising,

works

12

hours to prepare the

magazine ad?

(3)		(4)	=	Indirect costs allocated
			=

1: Requirements

1.	What is Brooks' predetermined overhead allocation rate?
2.	What indirect costs will be allocated to Client 507 if Amanda Hilton, an advertising agent at Brooks Advertising, works 12 hours to prepare the magazine ad?

(1)

Total estimated direct costs

Total estimated indirect costs

Estimated direct labor hours

Hours worked per year

Total indirect labor hours

Yearly salary

(2)

Total estimated direct costs

Total estimated indirect costs

Estimated direct labor hours

Hours worked per year

Total indirect labor hours

Yearly salary

(3)

Daily salary

Hourly salary

Hours worked on job

Hours worked per year

Predetermined overhead allocation rate

Yearly salary

(4)

Daily salary

Hourly salary

Hours worked on job

Hours worked per year

Predetermined overhead allocation rate

Yearly salary