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Question Help Northeast, Inc. is a technology consulting firm focused on Web site development and integration of Internet business applications. The company has computed a

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Question Help Northeast, Inc. is a technology consulting firm focused on Web site development and integration of Internet business applications. The company has computed a predetermined overhead allocation rate of $155 per direct labor hour. The president of Northeast suspects that her allocation of indirect costs could be giving misleading results, so she decides to develop an ABC system. She identifies three activities documentation preparation, information technology support, and training She figures that documentation costs are driven by the number of pages, information technology support costs are driven by the number of software applications used, and training costs are driven by the number of direct labor hours worked. Estimates of the costs and quantities of the allocation bases follow E (Click the icon to view the estimates.) Compute the predetermined overhead allocation rate for each activity Round to the nearest dollar. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity (Round your answers to the nearest whole dollar. Abbreviation used: IT information technology.) Predetermined OH Estimated overhead costs Estimated qty of the allocation base allocation rate 1162500 7200 161 5 Document preparation i Data Table - X Estimated Quantity Activity Estimated Cost Allocation Base of Allocation Base 220,000 Documentation preparation 5,500 pages Pages 102,000 Applications used 850 applications Information technology support 840,500 Direct labor hours 7,200 hours Training 1,162,500 Total indirect costs Done Print

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