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. (Click the icon to view the prepared budget.) In November 2018, Skylark Design served several clients. Records for two clients appear here: (Click the icon to view the records for two clients.) Requirement 1. Compute Skylark Design's direct labor rate and its predetermined overhead allocation rate for 2018. (Abbreviation used: OH = overhead.) Begin with the direct labor rate. Actual direct labor costs 2400000 Actual direct labor hours 8000 Compute Skylark Design's predetermined overhead cost allocation rate for 2018. Direct labor rate 300 per hour Estimated OH costs 960,000 Actual direct labor hours 8000 Predetermined OH cost allocation rate 8.3 % 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.) Skylark Design, Inc. Estimated Cost of Food Place and Root Chocolates Jobs Direct Costs: Direct labor hrs. > Total Direct Costs Allocated Indirect Costs: Food Place Root Chocolates 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? Food Place S Root Chocolates $ Requirement 4. Why does Skylark Design assign costs to jobs? Skylark Design assigns costs to jobs to help the company Requirements 1. Compute Skylark Design's direct labor rate and its predetermined overhead allocation rate for 2018. 2. Compute the total cost of each job. If Jackson 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? Data table Print Done that cover all costs and contribute to profit. Assigning costs to also can help Skylark Design control costs. Direct labor hours (professionals) Direct labor costs (professionals) Support staff salaries Computer leases Office supplies Office rent 8,000 hours $ 2,400,000 826,000 50,000 24,000 60,000 Data table Print Done Food Place Direct labor hours 800 hours Software licensing costs Travel costs S 1,500 S 8,000 Print Done Root Chocolates 500 hours 300 0