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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
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 labour, 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 labour costs.At the beginning of the current year, managing partner Mary Milici prepared the following budget: Direct labour hours (professional) 10,000 hours Direct labour costs (professional) . . .. . $ 1,400,000 Support staff salaries . .... 170,000 Computer lease payments. . . 49,000 Office supplies . . . .. 29,000 Office rent . . . 60,000Later that same year, in November, Dove Design sewed several clients. Records for two clients appear here: Dining Coop AllFood.com Direct labour hours ......... 820 hours 60 hours Licensing costs ............ $ 2.100 $ 220 Travel costs ............... 1 5.500 5 0 EON . Compute Dove Design's predetermined indirect cost allocation rate for the current year. . Compute the total cost of each of the two jobs listed. . If Milici wants to earn prots equal to 20% of sales revenue, how much (what total fee) should she charge each of these two clients
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