Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bar None Legal Services, Inc. is a consulting firm that offers optimal legal solutions. It allocates indirect costs using a single predetermined overhead allocation rate

image text in transcribed

Bar None Legal Services, Inc. is a consulting firm that offers optimal legal solutions. It allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base. The estimated indirect costs for this year amount to $170,000. The company is expected to work 17,000 direct labor hours during the year. The direct labor rate is $200 per hour. Clients are billed at 130% of direct labor cost. Last month, Bar None's consultants spent 180 hours on Henderson, Inc. Calculate the total costs assigned and allocated to Henderson. Select one: A. $189,000 B. $36,000 O C. $37,800 D. $9000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions