Joe & Rose is an advertising agency. The firm uses a job cost system in which each client is a different "job." Joe & Rose traces direct labor, software licensing costs and travel costs directly to each job (client). The company allocates indirect costs to jabs based on a predetermined indirect cost allocation rate based on direct labor hours. At the beginning of the current year, managing partner Jim Amica prepared a budget: (Click the icon to view the prepared budget) During January of the current year, Joe & Rose served several clients. Records for two clients appear here: (Click the icon to view the records for two cliente.) Read the requirements Requirement 1. Compute Joe & Rose's predetermined indirect cost allocation rate for the current year based on direct labor hours. Compute the predetermined indirect cost allocation rate. 1 Total estimated Indirect costs + Total estimated direct labor hours - Predelemined indirect cost allocation rate Der hour Requirement 2. Compute the total cost of each job. First enter the direct costs for sach job, then enter the indirect costs and total cost for the jobs. (Complete all input fields. For accounts with no balance, make sure to enter 'O' in the appropriate column) Joe & Rose Estimated Cost of All Trins.com and Port Adak Jobs AllTrips.com Port Adak - X Data table Golf Resort Direct Costs Direct labor Data table 230,000 hours hours Software licensing costs Travel Direct labor hours (professional) ... 17,600 hours Direct labor costs (professional) $ 2,464,000 Support staff salaries.. $ Rent and utilities $ 50,000 Supplies.... $ 447,000 Lease payments on computer hardware $ 65,000 Total Direct Costs Indirect Costs: Direct labor hours..... Software loensing costs... $ Travel costs $ AllTrips.com Port Adak Golf Resort 770 hours 25 hours 2,500 $ 500 7.000 $ 0 S x hours S hours ! Print Done Print Done Joe & Rose is an advertising agency. The firm uses a job cost system in which each client is a different "job." Joe & Rose traces direct Labor, software licensing costs and travel costs directly to each job (client). The company allocates incirect costs to jabs based on a predetermined indirect cost allocation rate based on direct labor hours. At the beginning of the current year, managing partner Jim Amica prepared a budget (Click the icon to view the prepared budget) During January of the current year, Joe & Rose served several clients. Records for two clients appear here: (Click the icon to view the records for two cliente.) Read the requirements AllTrips.com Port Adak Data table Golf Resort Direc: Costs Direct labor hours x hours Software licensing costs Travel Direct labor hours (professional) ........ 17,600 hours Direct labor costs (professional). ....$ 2,164,000 Support staff salaries.... $ 230,000 Rent and utilities ....... $ 50,000 Supplies... $ 447,000 Lease payments on computer hardware .. $ 65,000 Tolal Direct Costs Indirect Costs: S hours S hours Print Done Total Cost Requirement 3. If Joe & Rose wants to earn profils equal to 20% of sales revenue, now much (wnal total fee) should it charge each of these two cliente? Determine the formula to compute the amount Jos & Rose should charge these clients, then compute the amounts (Round your answers to two decimal places, XXX) Totaljob cost % of costs to revenue Fre charged Data table % = All Trips.com Port Adak Golf Resort Requirement 4. Why does Joe & Rose assign costs to jobs? Joe & Rose assign costs to jobs to help the company set fees AllTrips.com Port Adak Golf Resort 770 hours 25 hour 2,600 S 50 7,000 S that cover all costs and contribute to profit. Assigning costs to individual clients Direct labor hours ......... Software licensing costs ... S Travel costs ..............S also can helo Joe &
