Carlson Computing Services expects its computer technicians will work a total of 12,000 direct labor hours during the upcoming year. Abba's estimated total indirect costs are $180,000. The indirect cost allocation rate is based on direct labor hours.
A) What is the indirect cost allocation rate?
B) What indirect costs will be allocated to client 230, if one computer technician works 7 hours to prepare the annual report?
19) The engineering firm of Timothy & Greene uses a job costing system to accumulate client-related costs. The indirect cost allocation rate is 70% of direct labor cost. Staff engineer time is charged at a rate of $60 per labor hour. A recent job for a client involved 25 staff labor hours by staff engineers.
Compute the cost of the job.
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