Western Company is a management consulting firm. The company expects to incur $252,000 of indirect costs this
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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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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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