Dunby,IncIs a Consulting Firm That Offers Optimal Legal Solutions

question 149

Multiple Choice

Dunby,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 $160,000.The company is expected to work 6,000 direct labor hours during the year.The direct labor rate is $200 per hour.Clients are billed at 120% of direct labor cost.Last month,Dunby's consultants spent 170 hours on Xyme,Inc.What is the predetermined overhead allocation rate per direct labor hour?

• A)$800 per hour
• B)$27 per hour
• C)$941 per hour
• D)$30 per hour

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Definitions:

Task Performance

Involves the execution or accomplishment of a specific job or function, measuring how well an individual or group carries out assigned duties and responsibilities.

Storming Stage

The phase in team development characterized by conflict and competition as team members establish roles.

Performing Stage

The phase in team development where the group functions harmoniously towards achieving its goals.

Norming Stage

The phase in team development where members resolve differences, appreciate colleagues' strengths, and respect the team's authority, leading to improved cooperation and progress towards goals.