Southwestern, Inc. is a technology consulting firm focused on Web site development and integration of...
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Southwestern 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 $ comma of indirect costs this year, and she expects her firm to work comma direct labor hours. Southwesterns systems consultants provide direct labor at a rate of $ per hour. Clients are billed at of direct labor cost. Last month, Southwesterns consultants spent hours on Halberts engagement. Requirements Compute Southwesterns predetermined overhead allocation rate per direct labor hour. Compute the total cost assigned to the Halbert engagement. Compute the operating income from the Halbert engagement.
Southwestern 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 $ comma of indirect costs this year, and she expects her firm to work comma direct labor hours. Southwesterns systems consultants provide direct labor at a rate of $ per hour. Clients are billed at of direct labor cost. Last month, Southwesterns consultants spent hours on Halberts engagement.
Requirements
Compute Southwesterns predetermined overhead allocation rate per direct labor hour.
Compute the total cost assigned to the Halbert engagement.
Compute the operating income from the Halbert engagement.
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