Question
Delta Services Inc. provides consulting services in three areas: Management Consulting, IT Consulting, and Financial Consulting. The company incurred total overhead costs of SAR 120,000
Delta Services Inc. provides consulting services in three areas: Management Consulting, IT Consulting, and Financial Consulting. The company incurred total overhead costs of SAR 120,000 in June 2024. The cost drivers for each consulting area are as follows: number of clients for Management Consulting, number of projects for IT Consulting, and number of hours for Financial Consulting. Allocate overhead costs to each consulting area based on the respective cost drivers: 50 clients for Management Consulting, 30 projects for IT Consulting, and 400 hours for Financial Consulting.
Requirements:
- Calculate the predetermined overhead rate for each consulting area.
- Allocate overhead costs to each consulting area.
- Prepare a summary of total costs for each consulting area.
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Accounting Volume 1
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian edition
978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096
