accounting 2

X Data table .... 10,000 hours $ 1,400,000 ... $ Direct labor hours (professional) Direct labor costs (professional) Support staff salaries .. Computer lease payments ... Office supplies... 170,000 . ... $ 49,000 $ $ $ 29,000 $ 60,000 Office rent. . .. Print Done Data table Lovely Libations TopStar.com 730 hours Direct labor hours ..... 45 hours Licensing costs ....... $ 100 3,100 $ $ $ Travel costs .. 7,000 $ O Print Done Hummingbird Design is an interior design firm. The firm uses a job cost system in which each client is a different "job." Hummingbird 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. Requirement 1. Compute Hummingbird 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 % Requirement 2. Compute the total cost of each of the two jobs listed. First enter in the direct costs for each job, then enter in the indirect costs and total cost for the jobs. (Complete all input fields. For accounts with no balance, make sure to enter "o" in the appropriate cell. Enter percentage amounts as a whole number Round your answers to the nearest whole dollar.) Hummingbird Design Estimated Cost of Lovely Libations and TopStar.com Jobs Lovely Libations TooStar.com Hummingbird Design Estimated Cost of Lovely Libations and TopStar.com Jobs Lovely Libations TopStar.com Direct Costs: hours x hours x Total Direct Costs Indirect Costs: % x % X Total Cost Requirement 3. If Hummingbird Design wants to earn profits equal to 10% of sales revenue, how much (what total fee) should the company charge each of these two clients ? Identify the formula then determine the amount Hummingbird Design should charge these clients. (Round your answers to the nearest whole dollar) Fee charged Lovely Libations TopStar.com % Requirement 4. Why does Hummingbird Design assign costs to jobs? % that cover all costs and contribute to profit. Assigning costs Hummingbird Design assigns costs to jobs to help the company also can help Hummingbird Design control costs, to