Art, Music, and Creative Writing homework help
Art, Music, and Creative Writing homework help. Design, Inc., is a web site design and consulting firm.ÿ The firm uses a job order costingÿÿsystem, in which each client is a different job.ÿ Widget Design traces direct labor, licensing costs,ÿÿand travel costs directly to each job.ÿ It allocates indirect costs to jobs based on a predeterminedÿÿindirect cost allocation rate, computed as a percentage of direct labor costs.ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿAt the beginning of 2011, managing partner Judi Johnson prepared the following budget:ÿÿÿDirect Labor Hoursÿ10,000hoursÿÿÿÿÿÿDirect Labor Costsÿÿ$ 1,400,000 ÿÿÿÿÿÿÿSupport Staff Salariesÿ$ÿÿÿ 170,000 ÿÿÿÿÿÿÿComputer Leasesÿÿ$ÿÿÿÿÿ 49,000 ÿÿÿÿÿÿÿOffice Suppliesÿÿ$ÿÿÿÿÿ 29,000 ÿÿÿÿÿÿÿOffice Rentÿÿ$ÿÿÿÿÿ 60,000 ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿIn November 2011, Widget Design served several clients.ÿ Records for two clients appear here:ÿÿÿÿÿÿÿDining CoopRoot ChocolatesÿÿÿDirect labor hoursÿÿ740 hoursÿ65hoursÿÿÿSoftware licensing costsÿÿ$ÿÿÿ 2,100 ÿÿ$ÿÿÿÿÿÿÿ 300 ÿÿÿÿTravel costsÿÿÿ$ÿÿÿ 9,000 ÿÿ$ÿÿÿÿÿÿÿÿÿÿ -ÿÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿDeliverablesÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ1.ÿÿCompute Design’s predetermined indirect cost allocation rate for 2011.ÿÿ2.ÿÿCompute the total cost of each job.ÿÿÿÿÿÿ3.ÿÿIf Design’s inc wants to earn profits equal to 20% of sales revenue, how much (what fee) shouldÿÿÿit charge each of these two clients?ÿÿÿÿÿÿ4.ÿÿWhy does Widget Design assign costs to jobs?ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿDeliverable 1ÿÿÿÿÿÿÿÿÿÿThe predetermined indirect cost allocation rate =ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿHINT:Do this with a formula showing indirect costs to total direct labor costsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿDeliverable 2ÿÿÿÿÿÿÿÿÿÿFirst enter in the direct costs for each job.ÿ Then enter in the indirect costs and totalÿÿÿcosts for the jobs.ÿÿÿÿÿÿÿÿÿMake sure to enter “0” in the appropriate column.ÿ Enter percentage amounts as a wholeÿÿÿnumber.ÿ Round your answers to the nearest whole dollar.ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿWidget Design, Inc.ÿÿÿÿÿÿEstimated Cost of Dining Coop and Root Chocolates JobsÿÿÿÿÿÿÿÿÿDining CoopRoot ChocolatesÿÿÿÿÿÿDirect Costs:ÿÿÿÿÿÿÿÿÿÿDirect laborÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿSoftware licensing costsÿÿÿÿÿÿÿÿTravelÿÿÿÿÿÿÿÿÿÿTotal Direct CostsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿIndirect Costs:ÿÿÿÿÿÿÿÿÿÿÿÿÿ$ÿÿÿÿÿÿÿÿÿÿ -ÿÿ ÿÿÿÿÿÿÿÿÿÿÿÿ$ÿÿÿÿÿÿÿÿÿÿ -ÿÿ ÿÿÿÿÿÿTotal Costÿÿ$ÿÿÿÿÿÿÿÿÿÿ -ÿÿ ÿ$ÿÿÿÿÿÿÿÿÿÿ -ÿÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿDeliverable 3ÿÿÿÿÿÿÿÿÿDetermine the amount Robin Design, Inc. should charge these clients.ÿÿÿÿ(Round your answers to the nearest whole dollar.)ÿÿÿÿÿÿÿÿÿÿÿÿÿÿDining Coop:ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿRoot Chocolates:ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿDeliverable 4ÿÿÿÿÿÿÿÿÿÿWidget Designs, Inc. assigns costs to jobs to help the companyÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿAssigning costs to:ÿÿÿÿÿÿÿÿÿÿÿÿ&nbp;
Art, Music, and Creative Writing homework help
