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Cardinal Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing system in which each client is a
Cardinal 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. Cardinal 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 2018, managing partner Kelly Jackson prepared the following budget estimates: (Click the icon to view the prepared budget.) In November 2018, Cardinal 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 Cardinal Design's direct labor rate and its predetermined overhead allocation rate for 2018. (Abbreviation used: OH = overhead.) Begin with the direct labor rate. Direct labor rate per hour Compute Cardinal Design's predetermined overhead cost allocation rate for 2018. Predetermined OH cost allocation rate % 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 "O" for any zero balances.) 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.) Cardinal Design, Inc. Estimated Cost of Dining Coop and Juda Chocolates Jobs Juda Dining Coop Chocolates Direct Costs: hrs. x hrs. x Total Direct Costs Allocated Indirect Costs: % x 4 x Total Costs Cardinal 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. Cardinal 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 2018, managing partner Kelly Jackson prepared the following budget estimates: Click the icon to view the prepared budget.) In November 2018. Cardinal Design served several clients. Records for two clients appear here: (Click the icon to view the records for two clients.) Read the requirements Dini Direct Costs: Data Table - X i Data Table hrs. x hrs. Juda Chocolates 200 hours Direct labor hours Software licensing costs Travel costs Dining Coop 800 hours 2.500 6.000 8,000 hours $ 2.400.000 829,000 40,000 S S Direct labor hours (professionals) Direct labor costs (professionals) Support staff salaries Computer leases Office supplies Office rent 500 0 Total Direct Costs Allocated Indirect Costs: 24,000 61,000 % x Print Done % x Print Done Total Costs Requirement 3. If Jackson wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? S Dining Coop Juda Chocolates S Requirement 4. Why does Cardinal Design assign costs to jobs? Cardinal Design assigns costs to jobs to help the company that cover all costs and contribute to profit. Assigning costs to also can help Cardinal Design control costs
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