Dunby IncIs a Consulting Firm That Offers Optimal Legal Solutions

question 77

Multiple Choice

Dunby Inc.is a consulting firm that offers optimal legal solutions.It allocates indirect costs using a single plantwide rate with direct labor hours as the allocation base.The estimated indirect costs for this year amount to $150,000.The company is expected to work for 5,000 direct labor hours during the year.The direct labor rate is $250 per hour.Clients are billed at 140% of direct labor cost.Last month,Dunby's consultants spent 175 hours on Xyme Inc.What is the predetermined overhead allocation rate per direct labor hour?

• A)$250 per hour
• B)$30 per hour
• C)$280 per hour
• D)$350 per hour

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Definitions:

Moral Development

The process through which individuals acquire and understand moral concepts, principles, and reasoning, typically progressing through identifiable stages.

Focused On Others

The act or practice of putting the needs, concerns, or interests of others before one's own.

Maintain Relationships

The efforts taken to keep personal or professional connections strong, healthy, and mutually beneficial.

Apply Rules

The process or practice of putting established guidelines or regulations into action.