ION 18 Summer 20 Company is an accounting firm that allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base. Based on the following, what is the predetermined overhead allocation rate per direct labor hour? Estimated indirect costs for the year $300,000 Estimated direct labor hours for the year 2,667 Estimated direct labor cost $400,000 Direct Labor Rate per hour $150 Client billing rate based on direct labor cost 120% $75 per direct labor hour $20 per direct labor hour $150 per direct labor hour $112 per direct labor hour QUESTION 19 Which of the following is true of an activity-based costing system? It uses one plant wide predetermined overhead allocation rate. It is usually more accurate than a traditional costing system. It accumulates costs by processing department. It is not as complex as a traditional system