Haworth Company is a management consulting firm. The company expects to incur $167,500 of indirect costs this

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Haworth Company is a management consulting firm. The company expects to incur $167,500 of indirect costs this year. Indirect costs are allocated based on the following activities: 


Haworth bills clients at 120% of the direct labor costs. The company has estimated direct labor costs at $240 per hour. Last month, Haworth completed a consulting job for Client 76 and used the following resources:

Allocation Base                                 Client 76 

Direct labor hours ....................................60

Visits..............................................................5

Pages ..........................................................50

Determine the total cost of the consulting job and the operating income earned.

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Horngrens Financial And Managerial Accounting

ISBN: 9780134486833

6th Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

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