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    Argosy University/ Phoniex University/
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Category > Management Posted 17 Jan 2018 My Price 10.00

WB Design, Inc

WB Design, Inc., is a Web site design and consulting firm. The firm uses a job cost system, in which each client is a different “job.” WB Design traces direct labor, licensing costs, and travel cost 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.

At the beginning of 20X7, managing partner Mary Milici prepared the following budget:

In November 20X7, WB Design served several clients. Records for two clients appear here:

Required

1. Compute WB Design’s predetermined indirect cost allocation rate for 20X7.

2. Compute the total cost of each job.

3. If Milici wants to earn profits equal to 20% of sales revenue, how much (what total fee) should she charge each of these two clients?

4. Why does WB Design assign costs to jobs?

 

Answers

(5)
Status NEW Posted 17 Jan 2018 06:01 PM My Price 10.00

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