Abba Accounting Expects Its Accountants to Work a Total of 24,000

question 97

Multiple Choice

Abba Accounting expects its accountants to work a total of 24,000 direct labor hours per year. Abba's estimated total indirect costs are $240,000. What is the indirect cost allocation rate?

• A) $10 per hour
• B) $20 per hour
• C) $100 per hour
• D) $120 per hour