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Southwestern, Inc. is a technology consulting firm focused on Web site development and integration of...

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Accounting

Southwestern, 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 $ 540 comma 000 of indirect costs this year, and she expects her firm to work 4 comma 000 direct labor hours. Southwestern's systems consultants provide direct labor at a rate of $ 300 per hour. Clients are billed at 150% of direct labor cost. Last month, Southwestern's consultants spent 130 hours on Halbert's engagement.
Requirements
1.
Compute Southwestern's predetermined overhead allocation rate per direct labor hour.
2.
Compute the total cost assigned to the Halbert engagement.
3.
Compute the operating income from the Halbert engagement.

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