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Northern, Inc. is a technology consulting firm focused on website development and integration of Internet business applications. Clients are billed at 160% of direct labor

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Northern, Inc. is a technology consulting firm focused on website development and integration of Internet business applications. Clients are billed at 160% of direct labor cost. Suppose Northern's direct labor rate was $350 per hour and the company had computed the following predetermined overhead allocation rates under its ABC system: (Click the icon to view the allocation rates.) The Tallman engagement used the following resources last month: (Click the icon to view the resources used.) Read the requirements. Requirement 1. Compute the cost assigned to the Tallman engagement, using the ABC system. Begin by selecting the formula to allocate overhead (OH) costs. x Allocated overhead costs Tocused on website Clients are billed al 100% or direct labo Terni, inc. is a hnology consulting and integration of internet business applications per hour and the company had computed the following predetermined overhead allocation rates under its ABC system: X Data Table - Reference Allocation Base Tallman Predetemined Overhead ABO Direct labor hours 120 Allocation Rate Pages 310 46 per page Activity Documentation preparation Information technology support Training Applications used 82 $ 320 per application $ 122 per direct labor hour i - Requirements Print Dond 1. Compute the cost assigned to the Tallman engagement, using the ABC system. 2. Compute the operating income or loss from the Tallman engagement, using the ABC system. se from any drop-down list and then click Print Done

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