Business, 15.07.2021 22:10 PerfectMagZ
Summer 20 Company is an accounting firm that allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base. Based on the following, what is the predetermined overhead allocation rate per direct labor hour?
Estimated indirect costs for the year $300,000
Estimated direct labor hours for the year 2,667
Estimated direct labor cost $400,000
Direct Labor Rate per hour $150
Client billing rate based on direct labor cost 120%
a. $75 per direct labor hour
b. $20 per direct labor hour
c. $150 per direct labor hour
d. $112 per direct labor hour
Answers: 2
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