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Eastern Company is a management consulting firm. The company expects to incur $210,000 of indirect costs this year. Indirect costs are allocated based on
Eastern Company is a management consulting firm. The company expects to incur $210,000 of indirect costs this year. Indirect costs are allocated based on the following activities: (Click the icon to view the activities.) (Click the icon to view additional information.) Determine the total cost of the consulting job and the operating income earned. Begin by selecting the formula to compute the allocated overhead (OH) cost. Allocated = overhead costs Data table Activity Site visits Documentation preparation Total indirect costs Estimated Cost Allocation Base Estimated Quantity of Allocation Base Predetermined Overhead Allocation Rate $ 126,000 Number of visits 1,400 visits $90 per visit 84,000 Number of pages 2,400 pages $35 per page 210,000 Print Done More info - X Eastern bills clients at 160% of the direct labor costs. The company has estimated direct labor costs at $270 per hour. Last month, Eastern completed a consulting job for Client 76 and used the following resources: Allocation Base Direct labor hours Visits Pages Client 76 80 80 Print Done 5 20 20 Determine the total cost of the consulting job and the operatin Begin by selecting the formula to compute the allocated over Actual overhead costs Actual qty of the allocation base used Estimated overhead costs Estimated qty of the allocation base Predetermined OH allocation rate
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