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Hearthstone,Inc. ,a home healthcare firm,has been using a single predetermined overhead allocation rate with direct labor hours as the allocation base to allocate overhead costs.The direct labor rate is $200 per hour.Clients are billed at 190% of direct labor cost.Sofi Acosta,the president of Hearthstone,decided to develop an ABC system to more accurately allocate the indirect costs.She identified two activities related to the total indirect costs-travel and information technology (IT) support.The other relevant details are given below:
The predetermined overhead allocation rate for travel will be ________.(Round your answer to the nearest cent. )
Creeping Bureaucracy
Refers to the gradual increase in bureaucratic processes and procedures within an organization, often leading to decreased efficiency.
OD Strategy
Organizational Development Strategy, which involves plans and approaches to improve organizational effectiveness and facilitate change.
Reengineering
A process of rethinking and redesigning the way work is done to better support an organization's mission and reduce costs.
Team Building
Activities and practices aimed at enhancing the cohesion, performance, and interpersonal relationships within a group or team.
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