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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 5,000 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 OA. $9,625 OB. $43,750 O c. $113,750 O D. $43,945
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