Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Dove Design, Inc. is a Website design and consulting firm. The firm uses a job order costing system in which each client is a different
Dove Design, Inc. is a Website 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 ad a percentage of direct labor costs.
- X Data Table 10,000 hours Direct labor hours (professionals) Direct labor costs (professionals) $ 2,100,000 Support staff salaries 495,000 Computer leases 41,000 Office supplies 28,000 Office rent 66,000 Print Done X Data Table Food Place Maynard Chocolates 100 hours Direct labor hours 800 hours $ 5,000 $ 400 Software licensing costs Travel costs 9,000 0 Print Done i Requirements 1. Compute Dove 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 Dove Design assign costs to jobs? Print Done At the begininng of 2024, managing partner linfa delough prepared the following budget estimates:
In november 2024, Dove Design served several clients. Records for two clients appear here:
Read the requirements:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started