Question

bluebird design,inc. is a website design and consulting firm. the firm ues a job order costing system in which each client is a different job. blueboard designassigns 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. at the beginning of 2018, managing partner sally simone prepared the following budget estimates:direct labor hours(professionals) 7500. direct labor costs(professionals) 1,500,000. support staff salaries 464,000. computer leases 45,000. office supplies 29,000. office rent 62,000. in november 2018, bluebird design served several clients. records for 2 clients appear here: delightful treats 500 direct labor hours, 3500 software licensing costs, 5000 travel costs. melva chocolates 400 direct labor hours, 200 software licensing costs, 0 travel cost. 1.compute bluebird designs direct labor rate and it's predetermined overhead allocation rate of 2018. 2.compute the total cost of each job. 3.if samone wants to earn profits equal to 50% of service revenue, what fee should she charge of these 2 clients? 4.why does bluebird design assign costs to jobs?

Answer 1