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P19-33A Using job order costing in a service company Hummingbird Design, Inc. is a Web...

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Accounting

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P19-33A Using job order costing in a service company Hummingbird 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. Hummingbird Design assigns direct labor, licensing costs, and travel costs directly to each job. It allocates in direct costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs At the beginning of 2016, managing partner Sally Simone prepared the following budget estimates: Direct labor hours (professionals) 6,250 hours Direct labor costs (professionals) 1,800,000 Support staff salaries 767,000 46,000 Computer leases Office supplies 27,000 Office rent 60,000 In November 2016, Hummingbird Design served several clients. Records for two cli- ents appear here Delicious Treats Mes a Chocolates 700 hours Direct labor hours 100 hours Software licensing costs 5,000 300 Travel costs 6,000

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