Assume that Roth's accountants are expected to work a total of 8,000 direct labor hours in 2018.

Question:

Assume that Roth's accountants are expected to work a total of 8,000 direct labor hours in 2018. Roth's estimated total indirect costs are $96,000 and the allocation base used is direct labor hours.

Requirements

1. What is Roth's predetermined overhead allocation rate?

2. What indirect costs will be allocated to Client 507 if Jack Smith, an accountant at

Roth Accounting, works 15 hours to prepare the financial statements?

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Horngrens Accounting

ISBN: 978-0134674681

12th edition

Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura

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Question Posted: Feb 12, 2018 09:50 AM

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Assume that Roth's accountants are expected to work a total of 8,000 direct labor hours in 2018.

Question:

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Requirement 1 Predetermined Overhead Allocation Rate Total estim...View the full answer

Horngrens Accounting

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