1. IBM undertakes a special project to develop custom software for a client. In February 2040, the following costs are incurred:
   • Direct Materials: $500,000
   • Direct Labor: $1,200,000
   • Indirect Costs: $300,000

Requirements:

• Calculate the total job cost.
• Allocate indirect costs using a predetermined overhead rate.
• Prepare a job cost sheet.
• Analyze the project profitability.