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Pelican Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing system in which each At the beginning of 2018, managing partner Abby Bickers prepared the following budget estimates: client is a different job. Pelican Design assigns direct labor, licensing costs, and travel costs directly to each job. It B(Click the icon to view the prepared budget.) allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct In November 2018, Pelican Design served several clients. Records for two clients appear here: labor costs. B (Click the icon to view the records for two clients.) Read the requirements Requirement 1. Compute Pelican Design's direct labor rate and its predetermined overhead allocation rate for 2018. (Abbreviation used: OH = overhead.) Begin with the direct labor rate. Estimated direct labor Estimated direct labor Direct labor costs hours = rate Data Table per 1,900,000 10.000 hour Martin Compute Pelican Design's predetermined overhead cost allocation rate for 2018, Food Place Chocolates Estimated direct labor Predetermined OH cost Direct labor hours 1,000 hours 500 hours Estimated OH costs costs allocation rate Software licensing 380,000 2 1 ,900,000 = costs $ 4,000 $ 500 Travel costs 10,000 0 Requirement 2. Compute the total cost of each job. First, enter the direct costs for each job. Then enter in the indirect costs and compute the total cost for each job. (Enter a '0" for any zero balances.) Print Done Pelican Design, Inc. Estimated Cost of Food Place and Martin Chocolates Jobs Martin Food Place Chocolates Direct 0 Data Table Costs: Direct labor Direct labor hours (professionals) 10,000 hours Direct labor costs 500 * (professionals) $1,900,000 Support staff salaries 624,000 Computer leases 46,000 Office supplies 27,000 Total Direct Costs Ollice rent 63.000 Allocated Indirect Costs: % x Print Done 800 Total Costs Requirement 3. If Bickers wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? Food Place Martin Chocolates $ Requirement 4. Why does Pelican Design assign costs to jobs? Pelican Design assigns costs to jobs to help the company V that cover all costs and contribute to profit. Assigning costs to also can help Pelican Design control costs

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