Assignment Task:
Brilliant Image Inc. provides advertising services for clients across the nation. Brilliant Image is presently working on four projects, each for a different client. Brilliant Image accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 60% of media purchases. On April 1, the four advertising projects had the following accumulated costs:
Line Item Description April 1 Balances
Gold Rush Bank $85,900
Trek Airlines 25,800
Leisure Services Hotel 60,100
Blue Mountain Beverages 36,900
During April, Brilliant Image incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts:
Line Item Description Direct Labor Media Purchases
Gold Rush Bank $61,400 $229,400
Trek Airlines 27,400 201,900
Leisure Services Hotel 120,800 147,400
Blue Mountain Beverages 137,400 110,300
At the end of April, both the Gold Rush Bank and Trek Airlines campaigns were completed. The costs of completed campaigns are added to the cost of services account.
Determine each of the following for the month:
a. Direct labor costs.
fill in the blank 1 of 1$
b. Media purchases.
fill in the blank 1 of 1$
c. Overhead applied.
fill in the blank 1 of 1$
d. Cost of completed Gold Rush Bank and Trek Airlines campaigns.