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Southern, Inc. is a technology consulting firm focused on Web site development and integration of Internet business applications. The president of the company expects to
Southern, 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 $852, 500 of indirect costs this year, and she expects her firm to work 5, 500 direct labor hours. Southern's systems consultants provide direct labor at a rate of $360 per hour. Clients are billed at 150% of direct labor cost. Last month, Southern's consultants spent 170 hours on Kingston's engagement. Requirements 1. Compute Southern's predetermined overhead allocation rate per direct labor hour. 2. Compute the total cost assigned to the Kingston engagement. 3. Compute the operating income from the Kingston engagement. Requirement 1. Compute Southern's predetermined overhead allocation rate per direct labor hour. Select the formula, then enter the amounts to calculate the predetermined overhead (OH) allocation rate
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