Atlantic Company is a management consulting firm. The company expects to incur $ 150,000 of indirect costs this year. Indirect costs are allocated based on the following activities:

Atlantic bills clients at 140% of the direct labor costs. The company has estimated direct labor costs at $ 250 per hour. Last month, Atlantic completed a consulting job for Client 76 and used the following resources:
Allocation Base
Client ......... 76
Direct labor hours ..... 75
Visits .......... 10
Pages .......... 50
Determine the total cost of the consulting job and the operating incomeearned.

  • CreatedJanuary 16, 2015
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