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Mendburg, Inc. is a consulting firm that offers optimal legal solutions. It allocates indirect costs using a single predetermined overhead allocation rate with direct labor
Mendburg, Inc. is a consulting firm that offers optimal legal solutions. It allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base. The estimated indirect costs for this year amount to $100,000. The company is expected to work 5000 direct labor hours during the year. The direct labor rate is $250 per hour. Clients are billed at 130% of direct labor cost. Last month, Mendburg's consultants spent 175 hours on Curelli, Inc. Calculate the operating income from Curelli. Select one: O A. $43,750 B. $43,945 O C. $9625 D. $113,750
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