Raindrop gear utilizes job-order costing for production of customized umbrellas. each division establishes its own estimates regarding overhead, which are as follows: division a division b total estimated overhead $78,750 $240,000 total estimated machine hours 26,250 15,000 total estimated direct labor costs $262,500 $120,000 if division a allocates overhead on the basis of direct labor costs, and division b allocates overhead based on machine hours, what will be the predetermined overhead rate for each division?

crow 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. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?