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$ 104 comma 400$104,400 per year. Assume that Sautter'sSautter's advertising agentsadvertising agents are expected to work a total of 12 comma 00012,000 direct labor hours

$ 104 comma 400$104,400

per year. Assume that

Sautter'sSautter's

advertising agentsadvertising agents

are expected to work a total of

12 comma 00012,000

direct labor hours in

20182018.

Sautter'sSautter's

estimated total indirect costs are

$ 408 comma 000$408,000

and the allocation base used is direct labor hours.Read the requirements

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.

Requirement 1. What is

Sautter'sSautter's

predetermined overhead allocation rate?

/

=

Predetermined overhead allocation rate

/

=

Requirement 2. What indirect costs will be allocated to Client 507 if

Thomas TibbsThomas Tibbs,

an

advertising agentadvertising agent

at

Sautter AdvertisingSautter Advertising,

works

1010

hours to prepare the

magazine admagazine ad?

x

=

Indirect costs allocated

x

=

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