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Marsha Design is an interior design and consulting firm. The firm uses a job order...

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Accounting

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Marsha Design is an interior design and consulting firm. The firm uses a job order cost system in which each client represents an individual job. Marsha Design traces direct labor and travel costs to each job (client). It assigns indirect costs to clients at a predetermined overhead rate based on direct labor hours. At the beginning of the year, the managing partner, Marsha Cain, prepared the following budget: 5,400 hours $540,000 Direct labor hours (professional) Direct labor costs (professional) Indirect costs: Support staff salaries Office rent Office supplies Total expected indirect costs $ 73,600 59,000 24,000 $156, 600 Later that same year, in March, Marsha Design served several clients. Records for two clients appear below: Direct labor cost (professional) Travel costs Direct labor hours Oliverio $4,400 600 44 hours Mc Comb $3,400 200 34 hours Required: 1. Compute Marsha Design's predetermined overhead rate for the current year. 2. Compute the total cost of serving the clients listed. 3. Assume that Marsha charges clients $210 per hour for interior design services. How much gross profit would she earn on each of the clients above, ignoring any difference between actual and applied overhead

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