Cardinal Design, Inc. is a Web site design and consulting firm. The firm uses a job...

  
 
 
 

Transcribed Image Text:

Cardinal 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. Cardinal 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. Read the requirements At the beginning of 2018, managing partner Kelly Lopes prepared the following budget estimates: (Click the icon to view the prepared budget) In November 2018, Cardinal Design served several clients. Records for two clients appear here: (Click the icon to view the records for two clients.) Requirement 1. Compute Cardinal Design's direct labor rate and its predetermined overhead allocation rate for 2018. (Abbreviation used: OH = overhead) Begin with the direct labor rate. = Direct labor rate. per hour Compute Cardinal Design's predetermined overhead cost allocation rate for 2018. Predetermined OH cost allocation rate % 59 59 159 al Design, ting firm. Th m in which e nal Design a avel costs di ct costs to jo ead allocatio ect labor cost the requirem irement 1. C or 2018. (Abb with the dire pu uir , e njo ose i Data Table Office supplies Office rent Direct labor hours (professionals) 8,000 hours Direct labor costs (professionals) $ 1,600,000 Support staff salaries 501,000 Computer leases 48,000 28,000 63,000 Data Table Direct labor hours Software licensing costs Travel costs Print Done $ Print Food Place 1,000 hours Done - X - 2,500 $ 8,000 Martin Chocolates 100 hours 400 0 partner Kell- et estimates: ared budget. served seve ear here: ds for two ad allocation or rate X cation % for estion. 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 each job. (Enter a "0" for any zero balances.) Cardinal Design, Inc. Estimated Cost of Food Place and Martin Chocolates Jobs Direct Costs: hrs. x hrs. x Food Place Martin Chocolates hrs. x Total Direct Costs Allocated Indirect Costs: % x % x Total Costs Requirement 3. If Lopes wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? Food Place Martin Chocolates Requirement 4. Why does Cardinal Design assign costs to jobs? Cardinal Design assigns costs to jobs to help the company to profit. Assigning costs to $ $ that cover all costs and contribute also can help Cardinal Design control costs Cardinal 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. Cardinal 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. Read the requirements At the beginning of 2018, managing partner Kelly Lopes prepared the following budget estimates: (Click the icon to view the prepared budget) In November 2018, Cardinal Design served several clients. Records for two clients appear here: (Click the icon to view the records for two clients.) Requirement 1. Compute Cardinal Design's direct labor rate and its predetermined overhead allocation rate for 2018. (Abbreviation used: OH = overhead) Begin with the direct labor rate. = Direct labor rate. per hour Compute Cardinal Design's predetermined overhead cost allocation rate for 2018. Predetermined OH cost allocation rate % 59 59 159 al Design, ting firm. Th m in which e nal Design a avel costs di ct costs to jo ead allocatio ect labor cost the requirem irement 1. C or 2018. (Abb with the dire pu uir , e njo ose i Data Table Office supplies Office rent Direct labor hours (professionals) 8,000 hours Direct labor costs (professionals) $ 1,600,000 Support staff salaries 501,000 Computer leases 48,000 28,000 63,000 Data Table Direct labor hours Software licensing costs Travel costs Print Done $ Print Food Place 1,000 hours Done - X - 2,500 $ 8,000 Martin Chocolates 100 hours 400 0 partner Kell- et estimates: ared budget. served seve ear here: ds for two ad allocation or rate X cation % for estion. 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 each job. (Enter a "0" for any zero balances.) Cardinal Design, Inc. Estimated Cost of Food Place and Martin Chocolates Jobs Direct Costs: hrs. x hrs. x Food Place Martin Chocolates hrs. x Total Direct Costs Allocated Indirect Costs: % x % x Total Costs Requirement 3. If Lopes wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? Food Place Martin Chocolates Requirement 4. Why does Cardinal Design assign costs to jobs? Cardinal Design assigns costs to jobs to help the company to profit. Assigning costs to $ $ that cover all costs and contribute also can help Cardinal Design control costs

Answer rating: 100% (QA)

It seems youve shared several images showing data and several questions concerning job order costing for a web design company named Cardinal Design In... View the full answer