Armstrong and Pottle worked as ceramic grinders at Morton International’s Spencer facility. When the Rohm & Haas Co. ("R&H") acquired Morton, it gave employees a month to decide whether to quit and receive a severance payment or transfer to another facility and receive a larger incentive payment. Armstrong and Pottle wanted to keep their jobs, but the plant manager told them that they would make more money if they would resign and start their own business handling R&H’s outsourced grinding work. He stated that R&H would give Armstrong and Pottle’s new business all the outsourced work they could handle and that the company would like to give them all its outsourced work. Armstrong and Pottle followed this advice, and their business failed. In addition, R&H continued giving outsourced work to another firm. Armstrong and Pottle asserted the formation of an oral contract and claimed that R&H breached it. Were they correct?

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?