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E19-25 (similar to) Question Help Eastem, Inc. is a technology consulting firm fooused on Web site development and integration of Internet business applications. The company

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E19-25 (similar to) Question Help Eastem, Inc. is a technology consulting firm fooused on Web site development and integration of Internet business applications. The company has computed a predetermined overhead allocation rate of $140 per direct labor hour. The president of Eastern suspects that her allocation of indirect costs could be giving misleading results, so she decides to develop an ABC system. She identifies three activities: dooumentation preparation, information technology support, and training. She figures that dooumentation costs are driven by the number of pages, information technology support costs are driven by the number of software applications used and training oosts are driven by the number of direct labor hours worked. Estimates of the costs and quantities of the allocation bases follow EE (Click the icon to view the estimates.) Compute the predetermined overhead allocation rate for each activity. Round to the nearest dollar. Begin by selecting the formula to caloulate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Round your answers to the nearest whole dollar. Abbreviation used: IT information technology.) Predetermined OH allocation rate Choose from any drop-down list and then click Check Answer Check Answer Clear Al 3 parts remaining UIRNGh Hecip Eastem, Inc. is a technology consulting firm focused on Web site development and integration of Internet business applications. The company has compuded a Un predetermined overhead allocation rate of $140 per direct labor hour. The president of Easter suspects that her allocation of indirect costs could be giving misleading results, so she decides to develop an ABC system. She identifies three activities dooumentation preparation, information technology support, and training She figures that documentation costs are driven by the number of pages, information technology support costs are driven by the number of software applications used, and training costs are driven by the number of direct labor hours worked. Estimates of the costs and quantities of the allocation bases follow (Click the icon to view the estimates.) ne: Compute the predetermined overhead allocation rate for each activity. Round to the nearest dollar Wo Begin by selecting t (Round your answe ation rate for each activity. rent Data Table -X empt Estimated Quantity Activity Estimated Cost Allocation Base of Allocation Base 19-1 Documentation preparation 100.000 Pages 2,500 pages 19-4 79.200 Applications used 600 applications Information technology support 800.800 Direct labor hours 6,700 hours Training 980,000 Total indirect costs | Print Done Choose from any d Check Answer urse d Clear Al 3 parts remaining of Use

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