Question

P3-46A Use job costing at an advertising agency (Learning Objectives 3, 4, & 7) Anderson & Little is an advertising agency. The firm uses a job cost system in which each client is a different job." Anderson & Little 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 Trang Anderson prepared a budget: Direct labor hours (professional) 17,100 hours Direct labor costs (professional) $2,052,000 Support staff salaries S 160,000 Rent and utilities $ 48,000 Supplies S 461,300 Lease payments on computer hardware $ 66,000

Answer 1

Anderson 5 littis Il piedumined indirect Cost = total Guadirut last Direct labeur heuss Iof year] u ladiret lost lof year] Lallancas Yuta $160000+ $48000 + 461300 + 66000 17 1oo haies = - $ 735300 17190 hy 3 $43.pese direct lover hous I Calculation of Total Cost of each job (0) Particulars Diset laber Cast Dream vacation $ 90000 150 hours x 120*] Port Armour $3600 [30 hours X 120] 150 10) (c) 6) software licensing Travel cost Indirect cost 2500 8000 32 8 50 1290 ( 43 x 150 hours | 430 x 30hrs 5040 Total Cost 13.2 750

Durchlabor_cost_palouk Total direct laber coil _Total_cuiscl_faber-like.com = $2,52000__ 17100 hours : fill0 per house Dream Vacation 13 2750 Port Armous 5040 Total Cost (ansa) Adel: puofit 20% of 'Soles Resume or 85% of Cost ** 33187.50 __1260 Sales Rutenue 16593 7.50 6300 تهميم: م. تهم لوله * (/80 * 100) مه : lost will la 1100 to so _%ege of Lact to pefita do x100 80 25 % since it sree uses pob costing all cost is to be allocated to jobs only there all no department Ler products for a cost allocation. Weeykinys to be moved from sevenue from jos thus, all Costs an allowted to jobs.