Hummingbird Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing At the beginning of 2018, managing partner Charlotte Adessa prepared the following budget estimates: system in which each client is a different job. Hummingbird Design assigns direct labor, licensing costs, and (Click the icon to view the prepared budget.) travel costs directly to each job. It allocates indirect costs to jobs based on a predetermined overhead In November 2018, Hummingbird Design served several clients. Records for two clients appear here: allocation rate, computed as a percentage of direct labor costs. (Click the icon to view the records for two clients.) Read the requirements Requirement 1. Compute Hummingbird Design's direct labor rate and its predetermined overhead allocation rate for 2018. (Abbreviation used: OH = overhead.) Begin with the direct labor rate. Direct labor rate per hour Compute Hummingbird Design's predetermined overhead cost allocation rate for 2018. Predetermined OH cost allocation rate 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 for each job. (Enter a "0" for any zero balances.) Hummingbird Design, Inc. Estimated Cost of Yummy Treats and Martin Chocolates Jobs Martin Choose from any list or enter any number in the input fields and then continue to the next question. Estimated Cost of Yummy Treats and Martin Chocolates Jobs Martin Yummy Treats Chocolates Direct Costs: hrs. x hrs. X Total Direct Costs Allocated Indirect Costs: % x % X Total Direct Costs Allocated Indirect Costs: % x % x Total Costs Requirement 3. If Adessa wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? Yummy Treats Martin Chocolates Requirement 4. Why does Hummingbird Design assign costs to jobs? that cover all costs and contribute to profit. Assigning costs to also can help Hummingbird Design Hummingbird Design assigns costs to jobs to help the company control costs. 8,000 hours Direct labor hours (professionals) Direct labor costs (professionals) $ 2,400,000 338,000 Support staff salaries Computer leases 50,000 24,000 Office supplies Office rent 68,000 Yummy Treats Martin Chocolates Direct labor hours 900 hours 200 hours Software licensing costs $ 2,500 $ 100 Travel costs 9,000 0