Jack and jill are owners of upahill, an s corporation. they own 25 and 75 percent, respectively. upahill corporation (an s corporation) income statement december 31, year 1 and year 2 year 1 year 2 sales revenue $ 175,000 $ 310,000 cost of goods sold (60,000 ) (85,000 ) salary to owners jack and jill (40,000 ) (50,000 ) employee wages (15,000 ) (20,000 ) depreciation expense (10,000 ) (15,000 ) miscellaneous expenses (7,500 ) (9,000 ) interest income (related to business) 2,000 2,500 qualified dividend income 500 1,000 overall net income $ 45,000 $ 134,500 a. what amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? assume that upahill corporation has $100,000 of qualified property (unadjusted basis) in both years

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns 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. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?