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Enlighten Services, Inc., a management consulting firm, has been using a single predetermined overhead allocation rate with direct labor hours as the allocation base to
Enlighten 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. Miriam Levy, the president of Enlighten, decided to develop an ABC system to accurately allocate the indirect costs. She identified two activities related to the total indirect coststravel and information technology (IT) support. The other relevant details are given below Activity Travel IT Support Total Allocation base Miles driven Direct labor hours Estimated costs $70,000 52.000 S122,000 Estimated quantity of allocation base 4,000 miles 1,150 DLHT During the current month, Enlighten's consultants spent 150 labor hours for Malka, 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) O A. $7,500 OB. $6.783 OC. $2.261 OD. $22,158
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