Amaze, Inc., is a technology consulting firm focused on Web site development and integration of...
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Accounting
Amaze, Inc., is a technology consulting firm focused on Web site development and integration of Internet business applications. The president of the company expects to incur
$700,000 of indirect costs this year, and she expects her firm to work 8,000 direct labor hours. Amaze's systems consultants earn $340 per hour. Clients are billed at 150%
of direct labor cost. Last month Amaze's consultants spent 110 hours on Crandell's engagement
Requirements
1.
Compute Amaze's indirect cost allocation rate per direct labor hour.
2.
Compute the total cost assigned to the
Crandell engagement.
3.
Compute the operating income from the
Crandell engagement.
Answer & Explanation
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