Abba Accounting Expects Its Accountants to Work a Total of 24

question 74

Multiple Choice

Abba Accounting expects its accountants to work a total of 24 000 direct labour hours per year. Abba's estimated total indirect costs are $240 000. The direct labour rate is $75 per hour. If Abba does a job requiring 40 hours of direct labour, what is the total job cost?

• A)$400
• B)$7 000
• C)$3 400
• D)$3 000

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Definitions:

Diversity of Citizenship

A term used in legal jurisdiction to describe cases in which opposing parties are residents of different states or countries, often used in federal court cases.

Nicastro v. McIntyre

A Supreme Court case that deals with jurisdiction issues, specifically whether a foreign manufacturer can be sued in a U.S. state court for injuries caused by its products in that state.

Federal Court System

The system of courts operated by the federal government of the United States, which deals with issues of law and justice that fall under federal jurisdiction.

Monetary Judgment

A court order requiring one party to pay a certain sum of money to another party.