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Pelican Design is a website design and consulting firm. The firm uses a job cost system in which each client is a different job. Pelican
Pelican Design is a website design and consulting firm. The firm uses a job cost system in which each client is a different "job."
Pelican Design traces direct labor, licensing costs, and travel costs directly to each job (client). It allocates indirect costs to jobs based on a predetermined indirect cost allocation rate computed as a percentage of direct labor costs.
Requirement 3. If Pelican Design wants to earn profits equal to 10% of sales revenue, how much (what total fee) should the company charge each of these two clients? Identify the formula then determine the amount Pelican Design should charge these clients. (Round your answers to the nearest whole dollar.) - Fee charged Food Coop % AllNews.com % = Requirement 4. Why does Pelican Design assign costs to jobs? Pelican Design assigns costs to jobs to help the company that cover all costs and contribute to profit. Assigning costs to also can help Pelican Design control costs. Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 2. Compute the total cost of each of the two jobs listed. First enter in the direct costs for each job, then enter in the indirect costs and total cost for the jobs. (For accounts with no balance, make sure to enter "0" in the appropriate cell. Enter percentage amounts as a whole number. Round your answers to the nearest whole dollar.) Pelican Design Estimated Cost of Food Coop and AllNews.com Jobs Food Coop AllNews.com Direct Costs: hours x hours x Total Direct Costs Indirect Costs: % x Choose from any list or enter any number in the input fields and then continue to the next question. i Requirements Pelican Design is a website design and consulting firm. The firm uses a job cost system in which each client is a different At the beginning of the currel "job." Pelican Design traces direct labor, licensing costs, and travel costs directly to each job (client). It allocates indirect (Click the icon to view th| costs to jobs based on a predetermined indirect cost allocation rate computed as a percentage of direct labor costs. Later that same year in Nove (Click the icon to view th Read the requirements. 1. Compute Pelican Design's predetermined indirect cost allocation rate for the current year. 2. Compute the total cost of each of the two jobs listed. 3. If Pelican Design wants to earn profits equal to 20% of sales revenue, how much (what total fee) should the company charge each of these two clients? 4. Why does Pelican Design assign costs to jobs? Requirement 1. Compute Pelican Design's predetermined indirect cost allocation rate for the current year Identify the formula, then compute the rate. (Enter the result as a whole number.) Predetermined indirect cost allocation rate Print Done 8.000 hours $ 1.600.000 190,000 Requirement 2. Compute the total cost of each of the two jobs listed. First enter in the direct costs for each job, then enter in the indirect costs and total cost for the jobs. (For accounts with no balance, make sure to enter "O" in the appropriate answers to the nearest whole dollar.) Pelican Design Estimated cost of Food Coop and AllNews.com Jobs Direct labor hours (professional) Direct labor costs (professional) Support staff salaries...... Computer lease payments. Office supplies Office rent ......... $ $ $ 41,000 23,000 66,000 $ Food Coop AllNews.com i More Info Direct Costs: hours x Food Coop AllNews.com 30 hours Choose from any list or enter any number in the input fields and then continue to the next question. Direct labor hours ....... Licensing costs ......... $ Travel costs ............. $ 770 hours 2.700 10,000 $ 400 $ 0Step by Step Solution
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