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17,200 hours $ 2,236,000 $ Direct labor hours (professional) Direct labor costs (professional) Support staff salaries. Rent and utilities Supplies Lease payments on computer hardware $ 190,000 51,000 452,800 . $ 63,000 Direct labor hours .. Software licensing costs ... $ Travel costs $ Vacay.com Port Green Golf Resort 790 hours 65 hours 2,900 $ 400 11,000 $ 0 1. Compute Kurt & Theresa's predetermined indirect cost allocation rate for the current year based on direct labor hours. 2. Compute the total cost of each job. 3. If Kurt & Theresa wants to earn profits equal to 20% of sales revenue, how much (what total fee) should it charge each of these two clients? 4. Why does Kurt & Theresa assign costs to jobs? Kurt & Theresa is an advertising agency. The firm uses a job cost system in which each client is a different "job." Kurt & Theresa traces direct labor, software licensing costs, and travel costs directly to each job (client). The company allocates indirect costs to jobs based on a predetermined indirect cost allocation rate based on direct labor hours. At the beginning of the current year, managing partner John Agusto prepared a budget: B (Click the icon to view the prepared budget.) During January of the current year, Kurt & Theresa served several clients. Records for two clients appear here: (Click the icon to view the records for two clients.) Read the fequirements Requirement Compute Kurt & Theresa's predetermined indirect cost allocation rate for the current year based on direct labor hours. Compute the predetermined indirect cost allocation rate. = Predetermined indirect cost allocation rate per hour Compute the predetermined indirect cost allocation rate. + 11 Pred 11 Total estimated direct labor costs Total estimated direct labor hours Total estimated indirect costs Total operating expense Total revenue