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Dove Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing system in which each client is a
Dove 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. Dove 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 Deb Harrison prepared the following budget estimates: (Click the icon to view the prepared budget.) In November 2018, Dove 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 Dove Design's direct labor rate and its predetermined overhead allocation rate for 2018. (Abbreviation used: OH = overhead.) Begin with the direct labor rate. i Requirements 2 : = = Direct labor rate Direct labor rate per hour Compute Dove Design's predetermined overhead cost allocation rate for 2018. = Predetermined OH cost allocation rate 1. Compute Dove Design's direct labor rate and its predetermined overhead allocation rate for 2018. 2. Compute the total cost of each job. 3. If Harrison wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? 4. Why does Dove Design assign costs to jobs? 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 Print Done Dove Design, Inc. Estimated Cost of Food Coop and Maynard Chocolates Jobs i Data Table Data Table Maynard Chocolates Food Coop Direct Costs: Direct labor hours (professionals) 8,000 hours Support staff salaries Computer leases Office supplies Office rent 356,000 41,000 22,000 61,000 Direct labor hours Software licensing costs Travel costs $ Food Coop Maynard Chocolate 800 hours 100 hours 3,000 $ 500 6, 0000 Total Direct Costs Print Done Choose from any list or enter any number in the input fields and then continue to the nex Print Done
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