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Fancher Company is a management consulting firm. The company expects to incur $200,000 of indirect costs this year. Indirect costs are allocated based on the
Fancher Company is a management consulting firm. The company expects to incur $200,000 of indirect costs this year. Indirect costs are allocated based on the following activities Data Table Estimated Estimated Allocation Quantity of Overhead Activity Site visits Documentation preparation80,000 Number of pages Total indirect costs Cost Base Allocation Base Allocation Rate S 120 per visit 20 per page 120,000 Number of visits 1,000 visits 4,000 pages 200,000 More Info Fancher bills clients at 120% of the direct labor costs. The company has estimated direct labor costs at S270 per hour. Last month, Fancher completed a consulting job for Client 76 and used the following resources Allocation Base Direct labor hours Visits Pages Client 76 75 20 Fancher Company is a management consulting firm. The company expects to incur $200,000 of indirect costs this year. Indirect costs are allocated based on the following activities: EEB (Click the icon to view the activities.) 6 c (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 Compute the total allocated overhead cost of the job. Allocated Activity Site visits Document preparation Total Now calculate the total cost of the consulting job. overhead costs Total cost of job The operating income earned on the consulting job amounts to S
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