Bluebind Design, Inc. is a Web she design and consulting firm. The firm uses a j

Question

Bluebind Design, Inc. is a Web she design and consulting firm. The firm uses a job order costing system in which each dlent is a diferent job. Bluebird Design assigns direct labor, Icensing costs, and travel costs direcity to each job. It allocates indirect costs to jobs based on a predetermined overhead alocation rate, compued as a pencentage of direct labor Atthe Data Table Read the requirements Delightful Treats Melva Chocolates for 2018. (Atbrev IDrect labor hours 500 hours 400 hours Begin with the direct latbor rabe Sotware licensing costs 3,500 200 5,000 Estimated direct labor hours Direct labor ate $200 per hour Estimated direct labor costs 500,000 7,500 Print Done Compute Bluebird Design's predetermined overhead cost allocation rane for 2018 Direct labor hours (professionals) Drect labor costs (professionals) $ 1,500.000 Support staff salaries Computer leases Office supplies Office rent Actual direct labor cos direct labor l coss Actual direct labor hours 29000 62,000 Esimated direst labor hours Choose from any list or enter any number in the inpui helds and thon click Check Anewer Print Done Clear All

Explanation / Answer

Direct labor rate = $200 per hour

Explanation;

Estimated direct labor costs

/

Estimated direct labor hours

=

Direct labor rate

$1500000

/

7500

=

$200 per hour

Predetermined overhead allocation rate = 40%

Explanation;

Estimated OH costs

/

Estimated direct labor costs

=

Predetermined overhead allocation rate

$600000

/

1500000

=

40%

Estimated OH costs calculated as follow;

Estimated OH costs = $464000 + $45000 + $29000 + $62000 = $600000

Estimated direct labor costs

/

Estimated direct labor hours

=

Direct labor rate

$1500000

/

7500

=

$200 per hour

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