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Amaze, Inc., is a technology consulting firm focused on Web site development and integration of...

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Question

Accounting

Amaze, 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

$700,000 of indirect costs this year, and she expects her firm to work 8,000 direct labor hours. Amaze's systems consultants earn $340 per hour. Clients are billed at 150%

of direct labor cost. Last month Amaze's consultants spent 110 hours on Crandell's engagement

Requirements

1.

 Compute Amaze's indirect cost allocation rate per direct labor hour.

2.

 Compute the total cost assigned to the

Crandell engagement.

3.

 Compute the operating income from the

Crandell engagement.

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