This is a continuing problem this solution may be needed to give complete answers:

DANIELS CONSULTING, INC.
Schedule of Cost of Goods Manufactured
Month Ended January 31, 2018
Beginning Work-in-Process Inventory								$ 0
Direct Materials Used:
Beginning Raw Materials Inventory						$10,800
Purchases of Raw Materials						18,000
Raw Materials Available for Use						28,800
Ending Raw Materials Inventory						(9,600)
Direct Materials Used							$ 19,200
Direct Labor							200,000
Manufacturing Overhead:
Plant janitorial services						200
Utilities for plant						11,000
Rent on plant						12,000
Total Manufacturing Overhead							23,200
Total Manufacturing Costs Incurred during the Year								242,400
Total Manufacturing Costs to Account For								242,400
Ending Work-in-Process Inventory								(23,000)
Cost of Goods Manufactured								$ 219,400

Daniels Consulting uses a job order costing system in which each client is a different job. Daniels assigns direct labor, meal per diem 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.

At the beginning of 2018, the controller prepares the following budget:

Direct labor hours (professionals) 6, 250 hours

Direct labor costs (professionals) $1, 100, 000

Support staff salaries 90, 000

Computer leases 57, 000

Office supplies 40, 000

Office rent 55, 000

In November 2018, Daniels served several clients. Records for two clients appear here:

Tommys Trains Marcias Cookies

Direct Labor Hours 720 hours 200 hours

Meal per diem $2, 700 $600

Travel costs 8, 000 0

*Compute Daniels predetermined overhead allocation rate for 2018

*Compute the total cost of each job

DANIEL CONSULTING, INC.
Estimated Cost of Tommy's Trains and Marcia's Cookies Jobs
	Tommy's Trains	Marcia's Cookies

* If Daniels wants to earn profits equal to 25% of sales revenue, what fee should it charge each of these two clients?

* Why does Daniels assign costs to jobs?