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Question Help Crow Design is an interior design firm. The firm uses a job out system in which each client is a dent r ow At t
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Labor cost per hour Direct labor costs/Direct labor hours
Labor cost per hour $1,400,000/10,000
Labor cost per hour $140 per hour
Predetermined overhead rate Total estimated indirect costs/Direct labor hours
Support staff salaries $170,000
Computer lease payments $49,000
Office supplies $29,000
Office rent $60,000
Total estimated indirect costs $308,000
Direct labor hours 10000
Predetermined overhead rate $30.80
CROW DESIGN
Estimated cost of Tasty Coop and StarNow.com Jobs
Tasty Coop StartNow.com
Direct costs
Direct labor
790 hours*140 per hour $110,600
70 hours*140 per hour $9,800
Licensing costs $3,000 $250
Travel costs $6,000 $0
Total direct costs $119,600 $10,050
Indirect costs
790 hours*$30.80 per hour $24,332
70 hours*$30.80 per hour $2,156
Total job costs $143,932 $12,206
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