Enlighten Inc. uses an ABC system to accurately allocate the indirect costs. Enlighten uses two activities...
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Enlighten Inc. uses an ABC system to accurately allocate the indirect costs. Enlighten uses two activities to allocate indirect costs - travel and information technology (IT) support. The relevant details for allocting indirect costs are given below: Activity Travel IT Support Total Allocation base Miles driven Direct labor hours Estimated costs $90,000 58,000 $148,000.00 Estimated quantity of allocation base 1500 miles 1400 DLHr During the current month, Enlighten's consultants spent 150 labor hours for Malka, Inc. The job required the professionals to travel 450 miles in total. Determine the allocated overhead of the consulting job using the ABC system. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) Enlighten Inc. uses an ABC system to accurately allocate the indirect costs. Enlighten uses two activities to allocate indirect costs - travel and information technology (IT) support. The relevant details for allocting indirect costs are given below: Activity Travel IT Support Total Allocation base Miles driven Direct labor hours Estimated costs $90,000 58,000 $148,000.00 Estimated quantity of allocation base 1500 miles 1400 DLHr During the current month, Enlighten's consultants spent 150 labor hours for Malka, Inc. The job required the professionals to travel 450 miles in total. Determine the allocated overhead of the consulting job using the ABC system. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
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To allocate the indirect costs using the ABC system we need to determine the cost driver rat... View the full answer
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
Posted Date:
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