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Sierra Design is an interior design firm. The firm uses a job cost system in which each client is a different job. Sierra Design
Sierra Design is an interior design firm. The firm uses a job cost system in which each client is a different "job." Sierra 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 Laurie Walker prepared the following budget: (Click the icon to view the prepared budget.) Later that same year in November, Sierra 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 Sierra 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 %
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