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Hummingbird Design is an interior design firm. The firm uses a job cost system in which each client is a different job. Hummingbird Design traces

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Hummingbird Design is an interior design firm. The firm uses a job cost system in which each client is a different "job." Hummingbird Design traces direct labor, licensing costs, and travel costs directly to each job (client). 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 Ellie Watson prepared the following budget: Click the icon to view the prepared budget.) Later that same year in November, Hummingbird 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 Hummingbird Design's predetermined indirect cost allocation rate for the current year Identify the formula, then compute the rate. (Enter the result as a whole number) Predetermined indirect cost allocation rate % Predetermined ind cost allocation ra = i Data Table 1 8,000 hours $ 1,000,000 Direct labor hours (professional) Direct labor costs (professional) Support staff salaries Computer lease payments Office supplies $ 80,000 $ 46,000 $ 25,000 Office rent $ 49,000 Print Done Hummingbird Design's predetermined indirect cost allocation rate for the current year. ompute the rate. (Enter the result as a whole number.) Predetermined indirect cost allocation rate Data Table Fancy Food Allfood.com Direct labor hours 790 hours 45 hours $ 2,900 $ 500 Licensing costs Travel costs $ 11,000 $ 0 Print Done Print Done mt). It allocates indirect costs to jobs based on a direct cost allocation rate computed as a ect labor costs. (Click the icon to view the prepared budget.) Later that same year in November, Hummingbird several clients. Records for two clients appear her (Click the icon to view the records for two clien Read the requirements. Compute Hummingbird Design's predetermined indirect cost allocation rate for the current year. a, then compute the rate. (Enter the result as a whole number.) Predetermined indirect cost allocation rate % Requirements 1. Compute Hummingbird Design's predetermined indirect cost allocation rate for the current year. 2. Compute the total cost of each of the two jobs listed. 3. If Hummingbird Design wants to earn profits equal to 40% of sales revenue, how much (what total fee) should the company charge each of these two clients? 4. Why does Hummingbird Design assign costs to jobs? Print Done

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