Dexter Accounting Expects Its Accountants to Work a Total of 46,000

question 26

Multiple Choice

Dexter Accounting expects its accountants to work a total of 46,000 direct labour hours per year.Dexter's estimated total indirect costs are $598,000.Direct labour hours is the allocation base for indirect costs.What is the indirect cost allocation rate?

• A) $13 per hour
• B) $170 per hour
• C) $130 per hour
• D) $26 per hour

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Definitions:

Environmental Factors

External elements that can influence an organization’s operation, such as economic, social, technological, and political conditions.

Interpersonal Factors

Elements relating to interactions between individuals, affecting relationships and communication in personal and professional settings.

Consumer Behavior

The examination of how single persons, groups, or entities choose, obtain, utilize, and discard goods, services, experiences, or concepts to meet their requirements, and how these activities affect both the consumer and the wider community.

Long-term Relationships

Connections or partnerships developed over an extended period, characterized by mutual trust, loyalty, and ongoing commitment.