P3-46A Use job costing at an advertising agency (Learning Objectives 3, 4, & 7) Anderson & Little is an advertising agency. The firm uses a job cost system in which each client is a different "job." 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) Direct labor costs (professional) Support staff salaries Rent and utilities 17,100 hours $2,052,000 $ 160,000 $ 48,000