Answered step by step
Verified Expert Solution
Question
1 Approved Answer
S19-10 (similar to) :3 Question Help Eastern Company is a management consulting firm. The company expects to incur $228,000 of indirect costs this year. Indirect
S19-10 (similar to) :3 Question Help Eastern Company is a management consulting firm. The company expects to incur $228,000 of indirect costs this year. Indirect costs are allocated based on the following activities: 9: (Click the icon to view the activities.) (Click the icon to view additional information.) Determine the total cost of the consulting job and the operating income earned. Begin by selecting the formula to compute the allocated overhead (OH) cost. Allocated overhead costs Data Table - X More Info Estimated Quantity of Allocation Base Predetermined Overhead Allocation Rate Activity Estimated Cost Allocation Base Site visits $ 100,000 Number of visits 1.000 visits $100 per visit Documentation preparation 128,000 Number of pages 3,200 pages $40 per page Eastern bills clients at 160% of the direct labor costs. The company has estimated direct labor costs at $200 per hour. Last month, Eastern completed a consulting job for Client 76 and used the following resources: $ 228,000 Total indirect costs Allocation Base Client 76 Direct labor hours 65 Print Done Visits 12 Pages 40 Print Done Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started