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) 17,100 hours Direct labor costs (professional) $2,052,000 Support staff salaries S 160,000 Rent and utilities $ 48,000 Supplies S 461,300 Lease payments on computer hardware $ 66,000 During January of the current year, Anderson & Little served several clients. Records for two clients appear here: DreamVacation.com Port Armour Golf Resort Direct labor hours 750 hours 30 hours Software licensing costs $2,500 S150 Travel costs S8,000 SO Requirements 1. Compute Anderson & Little's predetermined indirect cost allocation rate for the current year based on direct labor hours. 2. Compute the total cost of each job. 3. If Anderson & Little wants to earn profits equal to 20% of sales revenue, how much (what total fee) should it charge each of these two clients? 4. Why does Anderson & Little assign costs to jobs