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Beatty Services, Inc., a management consulting firm, has been using a single predetermined overhead allocation rate with direct labor hours as the allocation base to
Beatty Services, Inc., a management consulting firm, has been using a single predetermined overhead allocation rate with direct labor hours as the allocation base to allocate overhead costs. The direct labor rate is $50 per hour. Nathan Page, the president of Beatty, decided to develop an ABC system to accurately allocate the indirect costs. She identified two activities related to the total indirect costs-travel and information technology (IT) support. The other relevant details are given below: Estimated quantity Activity Allocation base Estimated costs of allocation base Travel Miles driven $90,000 1500 miles IT Support Direct labor hours 58.000 1400 DLHO Total $148.000.00 During the current month, Beatty's consultants spent 150 labor hours for Sullivan, Inc. The job required the professionals to travel 450 miles in total. Determine the total cost of the consulting job using the ABC system. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) 513,715 O $6,215 $7.500 540,715 ion
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