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Pacific, Inc. is a technology consulting firm focused on Web site development and integration of Internet business applications. The president of the company expects to
Pacific, Inc. is a technology consulting firm focused on Web site development and integration of Internet business applications. The president of the company expects to incur $390,000 of indirect costs this year, and she expects' her firm to work 3,000 direct labor hours. Pacific's systems consultants provide direct labor at a rate of $360 per hour. Clients are billed at 140% of direct labor cost. Last month, Pacific's consultants spent 170 hours on Tallmeris engagement. Requirements 1. Compute Pacific's predetermined overhead allocation rate per direct labor hour. 2. Compute the total cost assigned to the Tallman engagement. 3. Compute the operating income from the Tallman engagement. Requirement 1. Compute 'Pacific's predetermined overhead allocation rate per direct labs hour. Select the formula, then enter the amounts to calculate the predetermined overhead (OH) allocation rate
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