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.

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Estimated Predetermined Quantity of Estimated Allocation Overhead Allocation Rate Activity Site visits Documentation preparation 50,000 Number of pages 2,500 pages Cost Base Allocation Base 100,000 Nmber of visits 1,000 visits$100 per visit 20 per page Total indirect costs 150,000