Vincent Jardine,a CPA,has a Firm in the State of New

question 152

Essay

Vincent Jardine,a CPA,has a firm in the state of New York.Vincent uses ABC to allocate overhead costs and has computed the following predetermined overhead allocation rates:
$\begin{array}{lll}\text { Activity } & \text { Allocation Base } & \text { Allocation Rate } \\\hline \text { Photocopy expenses } & \text { Number of pages } & \$ 0.75 \text { per page } \\\text { Cost of maintenance } & \text { Number of labor hours } & \$ 10.00 \text { per hour }\end{array}$ Vincent has important contacts in the northeastern parts of New York.During the past month,Vincent completed a job for Nurix,Inc.The job required 135 labor hours and 4,000 photocopies.Determine the amount of indirect costs to be allocated to the job.

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Definitions:

Human Papillomavirus

A group of viruses that can cause warts on the skin or mucous membranes, with certain strains associated with an increased risk of cancer.

Genital Herpes

An STD caused by the herpes simplex virus, characterized by painful blisters or sores on the genitals or surrounding areas.

Corpus Luteum

A temporary endocrine structure in female ovaries involved in the production of progesterone during the menstrual cycle and early pregnancy.

Follicle

(1) A simple, dry, dehiscent fruit that develops from a single carpel and splits open at maturity along one suture to liberate the seeds. (2) A small sac of cells in the mammalian ovary that contains a maturing egg. (3) The pocket in the skin from which a hair grows.