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Haworth Company is a management consulting firm. The company expects to incur $167,500 of indirect costs this year. Indirect costs are allocated based on the
Haworth Company is a management consulting firm. The company expects to incur $167,500 of indirect costs this year. Indirect costs are allocated based on the following activities: Click the icon to view the activities.) A (Click the icon to view additional information.) More Info Determine the total cost of the consulting job and the operating income earned. - X Begin by selecting the formula to compute the allocated overhead (OH) cost. Haworth bills clients at 120% of the direct labor costs. The company has estimated direct labor costs at $240 per hour. Last month, Haworth completed a consulting job for Client 76 and used the following resources: Allocated overhead costs Allocation Base Client 76 Compute the total allocated overhead cost of the job. Direct labor hours 60 Allocated Visits 5 overhead costs Pages 50 Activity Site visits Document preparation Print Done Total Now calculate the total cost of the consulting job. Data Table - X Total cost of job Estimated Quantity of Allocation Base Activity Estimated Cost Allocation Base Predetermined Overhead Allocation Rate $50 per visit The operating income earned on the consulting job amounts to Site visits $ 900 visits Documentation preparation 45,000 Number of visits 122,500 Number of pages 167,500 3,500 pages $35 per page $ Total indirect costs Print Done
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