wb design is a website design and consulting firm the firm uses a job cost system in 3615087

February 12, 2021/in Business Homework Help Online /by Joseph

WB Design is a website design and consulting firm. The firm uses a job cost system in which each client is a different “job.” WB Design traces direct labour, licensing costs, and travel costs directly to each job. It allocates indirect costs to jobs based on a predetermined indirect cost allocation rate computed as a percentage of direct labour costs.,At the beginning of the current year, managing partner Mary Milici prepared the following budget:,Direct labour hours (professional)…………………………………………….. 8,000 hours,Direct labour costs (professional)……………………………………………… $1,000,000,Support staff salaries………………………………………………………………. 80,000,Computer lease payments………………………………………………………… 46,000,Office supplies……………………………………………………………………….. 25,000,Office rent…………………………………………………………………………….. 49,000,Later that same year in November, WB Design served several clients. Records for two clients appear here:,Requirements,1. Compute WB Design’s predetermined indirect cost allocation rate for the current year.,2. Compute the total cost of each of the two jobs listed.,3. If Milici wants to earn profits equal to 20% of sales revenue, how much (what total fee) should she charge each of these two clients?,4. Why does WB Design assign costs to jobs?

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