Abba Accounting Expects Its Accountants to Work a Total of 24,000

Multiple Choice

Abba Accounting expects its accountants to work a total of 24,000 direct labor hours per year. Abba's estimated total indirect costs are $240,000. The direct labor rate is $75 per hour. If Abba does a job requiring 40 hours of direct labor, what is the total job cost?

A) $7,000
B) $400
C) $3,400
D) $3,000