New Era Advertising provides media services for clients across the nation. New Era is presently working on four projects, each for a different client. New Era accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 30% of media purchases.

On March 1, the four advertising projects had the following accumulated costs:

a. Direct personnel costs

b. Media purchases

c. Overhead applied

d. Cost of completed Stone Beverage and Hampshire Bank campaigns.

Transcribed Image Text:

Stone Beverage Hampshire Bank All-Right Rentals Sleepzz Hotel March 1 Balances $110,000 155,000 65,000 15,000 During March, New Era incurred the following personnel and media purchase costs related to preparing advertising for each of the four accounts: Personnel Salaries Media Purchases Stone Beverage Hampshire Bank $ 45,000 $160,000 25,000 90,000 All-Right Rentals 65,000 105,000 70,000 165,000 SleepEzz Hotel At the end of March, both the Stone Beverage and Hampshire Bank cam- paigns were completed. Determine each of the following for March: