Eadem, Inc is a chrology coating fim focused on website development and negation of internet business applications. Clients are billed at 170% of direct labor cost Suppose Easter's direct labor sale was $310 per hour and the company Click the icon to vane The allocation rates) had computed the towing predetermined overhead allocation rates under ABC system. The Mckoy engagement used the Soloungources month Ck the icon to view the Rest the reques orces so Requirements Requirement. Congute the cost assigned to the Mckoy engagement using the ABC egn by sing the firms 1. Compute the cost assigned to the Mcxdy engagement using the ABC system 2. Compute the operating income of kiss from the Mckoy engagement using the ABC Alocal obat costs Nest compute head costs alolated to the Mckoy engagement Reference Allocated Data table overhead costs Activity Document progration Intoon technology sopot Tova cost Print Done Predetemined Overhead Allocation Base Mckoy Activity Allocation Rate Direct labor hours 300 Documentaten preparation S 40p Pages 200 Indonnation technology suppo Applications used 80 Training 270 92 per direct bor hou Southwestern, Inc. is a technology consulting firm focused on Web site development and integration of Internet business applications. The president of the company expects to incur $850,000 of indirect costs this year, and she expects her firm to work 5,000 direct labor hours. Southwestern's systems consultants provide direct labor at a rate of $270 per hour. Clients are billed at 170% of direct labor cost. Last month, Southwestern's consultants spent 200 hours on Kingston's engagement Requirements 1. Compute Southwestern's predetermined overhead allocation rate per direct labor hour 2. Compute the total cost assigned to the Kingston engagement. 3. Compute the operating income from the Kingston engagement Predetermined OH Estimated overhead costs $ 850,000 Estimated qty of the allocation base 5,000 = = $ allocation rate 170 Requirement 2. Compute the total cost assigned to the Kingston engagement Begin by selecting the formula to calculate the overhead costs assigned to the engagement Actual qty of the allocation base used Allocated Predetermined OH allocation rate = overhead costs Now compute the total cost assigned to the Kingston engagement Total cost of engagement