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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
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 $150,000. The company is expected to work 8,000 direct labor hours during the year. The direct labor rate is $300 per hour. Clients are billed at 140% of direct labor cost. Last month, Superior's consultants spent 175 hours on Xyme, Inc. What is the predetermined overhead allocation rate per direct labor hour? (Round your final answer to the nearest whole dollar.) OA. $500 per hour OB. $857 per hour OC. $19 per hour OD. $27 per hour
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