Mendburg,Inc

question 25

Multiple Choice

Mendburg,Inc.is a consulting firm that offers optimal legal solutions.It allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base.The estimated indirect costs for this year amount to $100,000.The company is expected to work 5000 direct labor hours during the year.The direct labor rate is $250 per hour.Clients are billed at 130% of direct labor cost.Last month,Mendburg's consultants spent 175 hours on Curelli,Inc.Calculate the operating income from Curelli.

• A)$43,945
• B)$43,750
• C)$113,750
• D)$9625

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Definitions:

Attentional Blinking

A phenomenon where the brain momentarily overlooks or is blind to visual stimuli after having just processed another stimulus.

Crystallized Intelligence

The proficiency in deploying acquired knowledge and experiential learning.

Fluid Intelligence

the ability to think abstractly, reason, identify patterns, solve problems, and discern relationships without relying on acquired knowledge.

Working Memory

The capacity of the brain to hold and manipulate information in the short term for cognitive tasks such as learning, reasoning, and comprehension.