Enlighten Services,Inc

question 29

Multiple Choice

Enlighten Services,Inc. ,a management consulting 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 $50 per hour.Miriam Levy,the president of Enlighten,decided to develop an ABC system to 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:

During the current month,Enlighten's consultants spent 150 labor hours for Malka,Inc.The job required the professionals to travel 450 miles in total.Determine the total cost of the consulting job using the ABC system.(Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar. )

• A)$7500
• B)$2072
• C)$6215
• D)$40,715

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Definitions:

Nasoenteric Feeding Tube

A tube inserted through the nose into the stomach or small intestine to provide nutrition directly to patients who cannot eat by mouth.

Esophageal Tumor

An abnormal growth of cells in the esophagus, which can be benign or malignant (cancerous).

Esophageal Varices

Swollen, varicose veins located in the lining of the lower esophagus, often a complication of liver disease and can lead to life-threatening bleeding.

Failure To Thrive

A condition often seen in children, characterized by slower physical development and growth than normal for their age.