Antics, Inc., is a technology consulting firm focused on Web site development and integration of Internet business
Question:
Antics, Inc., is a technology consulting firm focused on Web site development and integration of Internet business applications. The president of the company expects to incur \($719,600\) of indirect costs this year, and she expects her firm to work 8,000 direct labor hours. Antics’ systems consultants earn \($350\) per hour. Clients are billed at 150% of direct labor cost. Last month Antics’ consultants spent 100 hours on Crickett’s engagement.
Requirements
1. Compute Antics’ indirect cost allocation rate per direct labor hour.
2. Compute the total cost assigned to the Crickett engagement.
3. Compute the operating income from the Crickett engagement.
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9780135080191
2nd Edition
Authors: Charles T Horngren, Jr Walter T Harrison