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I do not how to solve this problem. P3-46A Use job costing at an advertising agency (Learning Objectives 3, 4, ('3' 7) Anderson 81 Little

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P3-46A Use job costing at an advertising agency (Learning Objectives 3, 4, ('3' 7) Anderson 81 Little is an advertising agency. The rm uses a job cost system in which each client is a different \"j ob.\" Anderson & Little traces direct labor, software licensing costs, and travel costs directly to each job (client). The company allocates indirect costs to jobs based on a predetermined indirect cost allocation rate based on direct labor hours. At the beginning of the current year, managing partner Trang Anderson prepared a budget: Direct labor hours (professional) 17,100 hours Direct labor costs (professional) $2,052,000 Support staff salaries $ 160,000 Rent and utilities $ 48,000 Supplies $ 461,300 Lease payments on computer hardware $ 66,000 During January of the current year, Anderson & Little served several clients. Records for two clients appear here: DreamVacation.com Port Armour Golf Resort Direct labor 750 hours 30 hours hours Software $2,500 $1 50 licensing costs Travel costs $8,000 $ 0 Requirements 1. Compute Anderson & Little's predetermined indirect cost allocation rate for the current year based on direct labor hours. 2. Compute the total cost of each job. 3. If Anderson & Little wants to earn prots equal to 20% of sales revenue, how much (what total fee) should it charge each of these two clients? 4. Why does Anderson 2. Little assign costs to jobs

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