Bar None Legal Services,Inc

Multiple Choice

Bar None Legal Services,Inc.is a consulting firm that offers optimal legal solutions.It allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base.The estimated indirect costs for this year amount to $170,000.The company is expected to work 17,000 direct labor hours during the year.The direct labor rate is $200 per hour.Clients are billed at 130% of direct labor cost.Last month,Bar None's consultants spent 180 hours on Henderson,Inc.Calculate the total costs assigned and allocated to Henderson.

A) $37,800
B) $36,000
C) $189,000
D) $9000