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

question 30

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. The direct labor rate is $75 per hour. If Abba does a job requiring 40 hours of direct labor, what is the total job cost?

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

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Definitions:

Constitutional

Relating to the established laws and principles of a governmental constitution that define the nature and structure of political and civil institutions and govern the legality of governmental actions.

Laws

Formal rules and regulations, established by legislative bodies or by custom, which govern behavior and are enforceable by penalties.

Rules

Established guidelines or principles governing conduct or procedure within a particular area or activity.

Constitutional Democracy

A Constitutional Democracy is a form of government in which the powers of the majority are limited by a constitution that protects the rights and freedoms of individuals and minority groups.