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Superior Services, Inc. is a consulting firm that offers optimal legal solutions. It allocates indirect costs using a single predetermined overhead allocation rate with direct
Superior Services, Inc. is a consulting firm that offers optimal legal solutions. It allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base. The estimated indirect costs for this year amount to $170,000. The company is expected to work 6,000 direct labor hours during the year. The direct labor rate is $250 per hour. Clients are billed at 150% of direct labor cost. Last month, Superior's consultants spent 170 hours on Xyme, Inc. What is the predetermined overhead allocation rate per direct labor hour? (Round your final answer to the nearest whole dollar.) O A. $24 per hour O B. $680 per hour O C. $1,000 per hour OD. $28 per hour
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