Dove Design is a Website design and consulting firm. The firm uses a job cost system in which each client is a different job. Dove Design traces direct labor, licensing, and travel costs directly to each job. It allocates indirect costs to jobs based on a predetermined indirect cost allocation rate computed as a percentage of direct labor costs.

At the beginning of the current year, managing partner Mary Milici prepared the following budget: 1. Compute Dove Design's predetermined indirect cost allocation rate for the current year. Direct labour hours (professional) 10,000 hours 2. Compute the total cost of each of the two jobs listed 3. If Milici wants to earn profits equal to 20% of sales revenue, how much (what Direct labour costs (professional) ... 5 1,400,000 total fee) should she charge each of these two clients? Support staff salaries 170.000 Computer lease payments 49.000 Office supplies . 29,000 Office rent 60,000 Later that same year, in November, Dove Design served several clients. Records for two clients appear here Dining Coop AllFood.com Direct labour hours 820 hours 60 hours Licensing costs S 2.100 S 220 Travel costs 15.500 S 0