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

question 86

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, and bills the client using a standard markup of 40%, what will be the amount that Abba bills the client for?

• A) $3,700
• B) $4,200
• C) $3,400
• D) $4,760

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Definitions:

Absenteeism

The habitual non-presence of an employee at their job, which can be due to various reasons, including illness, personal issues, or dissatisfaction with the work environment.

Organizational Learning

Refers to the process by which an organization “learns” from past mistakes and adapts to its environment.

Organizational Pluralism

An approach within organizations that promotes diversity, inclusivity, and coexistence of multiple cultures, viewpoints, and practices.

Organizational Engineering

A field that applies engineering principles and analytical approaches to the design and optimization of organizational structures, processes, and systems for improved performance.