(L. OBJ. 5) Job order costing in a service company [5 min] Refer to the data in S16-12....

(L. OBJ. 5) Job order costing in a service company [5 min]

Refer to the data in S16-12. Assume that Blake’s Advertising agents are expected to work a total of 12,000 direct labor hours in 2011. Blake’s estimated total indirect costs are $360,000.

Requirements

1. What is Blake’s indirect cost allocation rate?

2. What indirect costs will be allocated to client 507 if Hilton works 18 hours to prepare the magazine ad?