Dunby IncIs a Consulting Firm That Offers Optimal Legal Solutions

question 18

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.Calculate the total cost assigned to Xyme.

• A)$49,000
• B)$43,750
• C)$38,500
• D)$61,250

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Definitions:

In-

A prefix used to indicate negation or absence.

Retro-

A prefix meaning "backwards" or "behind," used in various contexts including medical terminology to denote location or time.

Backward

Denotes a movement or action directed towards the rear or in reverse.

Ante-

A prefix meaning before or preceding in time or order.