Multiple Choice
Dunby,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 $160,000.The company is expected to work 6,000 direct labor hours during the year.The direct labor rate is $200 per hour.Clients are billed at 120% of direct labor cost.Last month,Dunby's consultants spent 170 hours on Xyme,Inc.What is the predetermined overhead allocation rate per direct labor hour?
A) $800 per hour
B) $27 per hour
C) $941 per hour
D) $30 per hour
Correct Answer:
Verified
Correct Answer:
Verified
Q54: The just-in-time management system is a(n)_.<br>A)labor management
Q76: Quality management systems (QMS)are systems that help
Q90: Activity-based management is not suitable for service
Q135: Activity-based costing refines the cost allocation process
Q150: Internal failure costs are costs incurred _.<br>A)to
Q152: Vincent Jardine,a CPA,has a firm in
Q154: Agostino,Inc.uses a just-in-time costing system.During the
Q170: Which of the following is a nonmanufacturing
Q188: Companies with diverse products can obtain better
Q251: Activity-based costing focuses on a single predetermined