P19-40 Accounting for manufacturing overhead This problem continues the Daniels Consulting situation from Problem P18-42 of Chapter 18. Daniels Consulting uses a job order costing system in which each client is a different job. Daniels assigns direct labor, meal per diem, and travel costs directly to each job. It allocates indirect costs to jobs based on a predetermined overhead alloca- tion rate, computed as a percentage of direct labor costs. At the beginning of 2018, the controller prepared the following budget: Direct labor hours (professionals) Direct labor costs (professionals) Support staff salaries Computer leases Office supplies Office rent 6,250 hours $ 1,100,000 90,000 57,000 40,000 55,000 In November 2018, Daniels served several clients. Records for two clients appear here: Tommy's Trains Marcia's Cookies Direct labor hours 720 hours 200 hours Meal per diem $2,700 $ 600 Travel costs 8,000 0 Requirements 1. Compute Daniels's predetermined overhead allocation rate for 2018. 2. Compute the total cost of each job. 3. If Daniels wants to earn profits equal to 25% of sales revenue, what fee should it charge each of these two clients? 4. Why does Daniels assign costs to jobs? Requirement 1 Calculate total estmated overhead cost Total Estimated Overhead Cost Calculate predetermined overhead allocation rate below 90,000 Requirement 2 (delete the line with question marks and input figures) DANIEL CONSULTING, INC. Estimated Cost of Tommy's Trains and Marcia's Cookies Jobs Direct Costs: Direct Labor ????? Hours x ????? per hour (see below for DL per hour) Total Direct Costs Total Cost Tommy's Trains Marcia's Cookies Calculate Direct Labor Cost per Hour Below Requirement 3 What is the Total Cost as a Percentage of Sales? Tommy's Trains Total Cost Percentage Marcia's Cookies Total Cost Percentage Requirement 4 Type narrative answer below beginning with "Daniel assigns costs to job ... hours per DLH