1) What is the direct labour rate if the chargeout rate for engineers is $56 per hour and the overhead is calculated at 40 percent of direct labour, assuming there is zero profit margin?

Select one:

a. $40

b. $56

c. $78.40

d. $22.40

2) The support department cost allocation method that fully accounts for the mutual provision of services between support departments is called the:

Select one:

A. direct method

B. step down method

C. reciprocal method

D. dual cost allocation method