Question
10. Optimum Finance Co. provides budget, savings and investment sewrvices to clients who want a stress free financial lifestyle. The comapny customizes a program for
10. Optimum Finance Co. provides budget, savings and investment sewrvices to clients who want a stress free financial lifestyle. The comapny customizes a program for each client based on their individsual goals. The company uses a job odercosting system that keeps track of the amount of time financial consultans spend with each client.
Optimum applies all indirect costs as a percentage of consultants labor costs.
During the most recent years, the firm estimaated that itwould pay consulatants $500,000 and incur indirect operating costs of 750,000. Actual consultant costs were 537500 and indirect costs were 725,000. what is the overhead rate that Optimum will use in the current year.
A 1.50 per dollar of consulant labor costs
B 1.35
C 0.67
D 1.45
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