Edgar Thompson, a CPA, Has a Firm in the State

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:
$$\begin{array} { l l l } \text { Activity } & \text { Allocation Ease } & \text { Allocation Rate } \\\hline \text { Photocopy expenses } & \text { Number of pages } & \$ 0.75 \text { per page } \\\text { Cost of maintenance } & \text { Number of labor hours } & \$ 10.00 \text { per hour }\end{array}$$ 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.