Trevor, a friend of yours from high school, works as a server at the st café. he asks you to him prepare his federal income tax return. when you inquire about why his bank deposits substantially exceed his tip income, he confides to you that he is a bookie on the side. trevor then provides you with the following documented income and expenses for the year: tip income $16,000 gambling income 52,000 gambling expenses payouts to winners 29,000 employee compensation 8,000 bribe to police officer who is aware of trevor's bookie activity 7,500

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?