Dunby Inc. is a consulting firm that offers optimal legal solutions. It allocates indirect costs...
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Dunby Inc. is a consulting firm that offers optimal legal solutions. It allocates indirect costs using a single plantwide rate with direct labor hours as the allocation base. The estimated indirect costs for this year amount to $150,000. The company is expected to work for 5,000 direct labor hours during the year. The direct labor rate is $250 per hour. Clients are billed at 140% of direct labor cost. Last month, Dunby's consultants spent 175 hours on Xyme Inc. What is the predetermined overhead allocation rate per direct labor hour?
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