Marsha Design is an interior design and consulting firm. The firm uses a job order cost system in which each client represents an

individual job. Marsha Design traces direct labor and travel costs to each job $($client$).$ It assigns indirect costs to clients at a

predetermined overhead rate based on direct labor hours.

At the beginning of the year, the managing partner, Marsha Cain, prepared the following budget:

Later that same year, in March, Marsha Design served several clients. Records for two clients appear below:

Required:

Compute Marsha Design's predetermined overhead rate for the current year.

Compute the total cost of serving the clients listed.

Assume that Marsha charges clients $$200$ per hour for interior design services. How much gross profit would she earn on each of

the clients above, ignoring any difference between actual and applied overhead?