Pelican Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing system in which each client is a different job. Pelican Design assigns direct labor, licensing costs, and travel costs directly to each job. It allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2018, managing partner Abby Bickers prepared the following budget estimates: (Click the icon to view the prepared budget.) In November 2018, 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 direct labor rate and its predetermined overhead allocation rate for 2018. (Abbreviation used: OH = overhead.) Begin with the direct labor rate. Estimated direct labor costs / Estimated direct labor hours = Direct labor rate 1,900,000 10,000 = 190 per hour Compute Pelican Design's predetermined overhead cost allocation rate for 2018. Estimated OH costs / Estimated direct labor costs | Predetermined OH cost allocation rate 380,000 1,900,000 20 % 6 Data Table 10,000 hours Requirement 2. Compute the total cost of each job. First, enter the direct costs for each job. Then enter in the indirect costs and compute the total cost for el Pelican Design, Inc. Estimated Cost of Food Place and Martin Chocolates Jobs Martin Food Place Chocolates Direct Costs: Direct labor 1 800 hrs. x 152,000 500 hrs. x 190 95,000 Software licensing costs 4,000 500 Travel costs 10,000 0 Total Direct Costs 166,000 95,500 Allocated Indirect Costs: 20% 152,000 30,400 20% - 95,000 19,000 196,400 Total Costs 114,500 Direct labor hours (professionals) Direct labor costs (professionals) Support staff salaries Computer leases Office supplies Office rent $ 1,900,000 624,000 46,000 27,000 63,000 Print Done Requirement 3. If Bickers wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? Food Place $ 245,500 Martin Chocolates $ 143,125 Requirement 4. Why does Pelican Design assign costs to jobs? Pelican Design assigns costs to jobs to help the company Pelican Design control costs. that cover all costs and contribute to profit. Assigning costs to also can help Pelican Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing system in which each client is a different job. Pelican Design assigns direct labor, licensing costs, and travel costs directly to each job. It allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2018, managing partner Abby Bickers prepared the following budget estimates: (Click the icon to view the prepared budget.) In November 2018, 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 direct labor rate and its predetermined overhead allocation rate for 2018. (Abbreviation used: OH = overhead.) Begin with the direct labor rate. Estimated direct labor costs / Estimated direct labor hours = Direct labor rate 1,900,000 10,000 = 190 per hour Compute Pelican Design's predetermined overhead cost allocation rate for 2018. Estimated OH costs / Estimated direct labor costs | Predetermined OH cost allocation rate 380,000 1,900,000 20 % 6 Data Table 10,000 hours Requirement 2. Compute the total cost of each job. First, enter the direct costs for each job. Then enter in the indirect costs and compute the total cost for el Pelican Design, Inc. Estimated Cost of Food Place and Martin Chocolates Jobs Martin Food Place Chocolates Direct Costs: Direct labor 1 800 hrs. x 152,000 500 hrs. x 190 95,000 Software licensing costs 4,000 500 Travel costs 10,000 0 Total Direct Costs 166,000 95,500 Allocated Indirect Costs: 20% 152,000 30,400 20% - 95,000 19,000 196,400 Total Costs 114,500 Direct labor hours (professionals) Direct labor costs (professionals) Support staff salaries Computer leases Office supplies Office rent $ 1,900,000 624,000 46,000 27,000 63,000 Print Done Requirement 3. If Bickers wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? Food Place $ 245,500 Martin Chocolates $ 143,125 Requirement 4. Why does Pelican Design assign costs to jobs? Pelican Design assigns costs to jobs to help the company Pelican Design control costs. that cover all costs and contribute to profit. Assigning costs to also can help