Dexter Accounting Expects Its Accountants to Work for 24,000 Direct

question 49

Multiple Choice

Dexter Accounting expects its accountants to work for 24,000 direct labor hours per year. Dexter's estimated total indirect costs are $240,000. The direct labor rate is $75 per hour. Direct labor hours is the allocation base for indirect costs. If Dexter 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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