Edgar Thompson,a CPA,has a Firm in the State of Florida

Essay

Edgar Thompson,a CPA,has a firm in the state of Florida.Edgar uses ABC to allocate overhead costs and has computed the following predetermined overhead allocation rates:
$$\begin{array} { l l l l } \text { Activity } & \text { Allocation Ease } & \text { Allocation late } \\\hline\text { Photocopy expenses } & \text { Number of pages } & \$ 0.75 ~~~~~ \text { per page } \\\text { Cost of maintenance } & \text { Number of labor hours } & \$ 10.00 ~~~\text { per hour }\end{array}$$ Edgar has important contacts in the northeastern parts of Florida.During the past month,Edgar completed a job for Tropica,Inc.The job required 135 labor hours and 4,000 photocopies.Determine the amount of indirect costs to be allocated to the job.