Pelican Design is an interior design 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 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 % At the beginning of the current year, managing partner Sarah Munro prepared the following budget: Data table - X Records for two clients appe Direct labor hours (professional) 8,000 hours Direct labor costs (professional) $ 1,000,000 Support staff salaries...... 80,000 Computer lease payments. 46,000 Office supplies...... $ 25,000 Office rent.. $ 49,000 Later that same year in November, Pelican Design served several clients. Records for two clients appear here: Data table Direct labor hours..... Licensing costs... Travel costs Fancy Food AllFood.com 760 hours 35 hours $ 2,700 $ 250 7,000 $ 0 - 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 10% 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? - - X