Question

Western Company is a management consulting firm. The company expects to incur $252,000 of indirect costs this year. Indirect costs are allocated based on the following activities:
Western bills clients at 130% of the direct labor costs. The company has estimated direct labor costs at $290 per hour. Last month, Western completed a consulting job for Client 76 and used the following resources:
Allocation Base Client 76
Direct labor hours .... 55
Visits .......... 10
Pages .......... 35
Determine the total cost of the consulting job and the operating income earned.


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  • CreatedJune 15, 2015
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