Business, 08.02.2021 18:40 thruhdyjgrt

Design is an interior design firm. The firm uses a job cost system in which each client is a different "job." Design traces direct labor, licensing costs, and travel costs directly to each job (client). It allocates indirect costs to jobs based on a predetermined indirect cost allocation rate computed as a percentage of direct labor costs. Direct labor hours (professional) . . . . . . . 10,000 hours
Direct labor costs (professional) . . . . . . . $1,300,000
Support staff salaries . . . . . . . . . . . . . . . . $160,000
Computer lease payments. . . . . . . . . . . . $48,000
Office supplies . . . . . . . . . . . . . . . . . . . . . $28,000
Office rent. . . . . . . . . . . . . . . . . . . . . . . . . $63,000

Delightful Dining DineNow. com
Direct labor hours . . . . . . . . . . 730 hours 35 hours
Licensing costs . . . . . . . . . . . . $2,500 $150
Travel costs . . . . . . . . . . . . . . . $6,000 $0

Requirements
a. Compute Sierra Design's predetermined indirect cost allocation rate for the current year.
b. Compute the total cost of each of the two jobs listed.
c. If Sierra Design wants to earn profits equal to 20% of sales revenue, how much (what total fee) should the company charge each of these two clients?
d. Why does Sierra Design assign costs to jobs?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 05:20

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.

Answers: 3

Answer

Business, 22.06.2019 08:30

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Answers: 3

Answer

Business, 22.06.2019 13:00

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.

Answers: 1

Answer

Business, 22.06.2019 17:10

To : of $25 up to 35 2 35 up to 45 5 45 up to 55 7 55 up to 65 20 65 up to 75 16 is$25 up to $35 ?

Answers: 1

Answer

You know the right answer?

Design is an interior design firm. The firm uses a job cost system in which each client is a differe...

Questions