Question Help P3-53A (similar to) 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. At the boginning of the current year, managing partner Cadence Winston prepared the following budget Click the icon to view the prepared budget.) Later that same year in November, Pelican Design served several clients. Records for two clients appear here: (Click the icon to view the records for two clients.) Read the requirements 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 Total estimated indirect costs Total estimated direct labor cost cost allocation rate $ 299,000 1,300,000 23 % 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. (Complete all input fields. For accounts with no balance, make sure to enter "O' in the appropriate cell, Enter percentage amounts as a whole number. Round your answers to the nearest whole dollar.) Pelican Design Estimated Cost of Fancy Food and AllNews.com Jobs 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. At the beginning of the current year, managing partner Cadence Winston prepared the following budget: (Click the icon to view the prepared budget.) Later that same year in November, Pelican Design served several clients. Records for two clients appear here: Click the icon to view the records for two clients.) Read the requirements. First enter in the direct costs for each job, then enter in the Indirect costs and total cost for the jobs. (Complete all input fields. For accounts with no balance, make sure to enter "ot" in the appropriate cell Enter percentage amounts as a wh number Round your answers to the nearest whole dollar) Pelican Design Estimated Cost of Fancy Food and AllNews.com Jobs Fancy Food AllNews.com Direct Costs: Direct labor 680 hours $ 88,400 130$ 130 S $ 8,450 65 hours Licensing costs 400 2,200 13.000 Travel 0 8,850 Total Direct Costs 103,600 s Choose from any drop-down list and then click Check Answer Clear All Check Answer 3 parts remaining 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 At the beginning of the current year, managing partner Cadence Winston prepared the following budget Click the icon to view the prepared budget) served several clients. Records for two clients appear here: * Ints * Data Table $ 130 s 88.400 680 hours 65 hours $ 130 S 8.450 i Data Table Licensing costs 2,200 400 Travel 13,000 0 Direct labor hours. Licensing costs Travel costs ...... Fancy Food AllNews.com 680 hours 65 hours 2,200 $ 400 $ 13,000 $ 0 ...... $ $ 103.600 $ 8.850 Total Direct Costs Indirect Costs 23 % $ 88,400 20,332 Print Done Direct labor hours (professional) .... 10,000 hours Direct labor costs (professional) .....$ 1,300,000 Support staff salaries .... $ 160.000 Computer lease payments S 48,0DD Office supplies.. S 28,000 Office rent S 63,000 1.944 23 %* $ 8,450 $ 123,932 | $ 10,794 Total Cost Requirement 3. If Pelican Design wants to earn profits equal to 30% 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.) Print Done + Fee charged Choose from any drop-down list and then click Check
