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Pacific Inc is a technology consulting firm focused on Web site development and integration of Internet business applications The president of the company expects to

Pacific, 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 $907,500 of indirect costs this year, and she expects her firm to work 5,500 direct labor hours. Pacific systems consultants provide direct labor at a rate of $350 per hour. Clients are billed at 170% of direct labor cost. Last month, Pacific's consultants spent 120 hours on Mckoy's engagement.

Requirements

1. Compute Pacific's predetermined overhead allocation rate per direct labor hour.

2. Compute the total cost assigned to the Mckoy engagement.

3. Compute the operating income from the Mckoy engagement.

Feb 08 2020 View more View Less

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