Sky blue plans provides financial planning for senior citizens. the costs of preparing 800 financial plans in the prior year were: direct labor $400,000 variable overhead 296,000 fixed overhead 250,000 total cost $946,000 at the start of the current year, the company received an offer from moosehaven, a retirement home for moose members. moosehaven wants sky blue plans to prepare financial plans for its 150 assisted living citizens. sky blue has the capacity to prepare up to 1,000 plans in a given year, so this special order would not take away revenue from any of sky blue’s current clients. moosehaven is willing to pay $880 per plan. what will be the effect on sky blue plan’s profit if it agrees to prepare plans for the 150 citizens of moosehaven?

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?