Summer 20 Company, an attorney office, uses a single plant wide rate with direct labor...
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Summer 20 Company, an attorney office, uses a single plant wide rate with direct labor as the base. The company has decided to use an ABC System and have identified the two activites below. Activity Allocation Base Estimated Costs $84,000 $59,000 Travel IT SUPPORT Miles Driven Direct Labor Hours Estimated Quantity 3,000 miles 1,400DLH $250 Direct Labor Rate per hour Client billing rate based on cost Miles driven for Client A job 14096 150 1. What is the predterminted allocation rate per mile for travel? 2. How much Travel cost would be allocated to Client A? YOU MUST SHOW AND LABEL WORK FOR CREDIT
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