Enlighten Services, Inc During the Current Month, Enlighten's Consultants Spent 150 Labor Hours
Enlighten Services, Inc., a management consulting firm, has been using a single predetermined overhead allocation rate with direct labor hours as the allocation base to allocate overhead costs. The direct labor rate is $50 per hour. Miriam Levy, the president of Enlighten, decided to develop an ABC system to accurately allocate the indirect costs. She identified two activities related to the total indirect costs-travel and information technology (IT) support. The other relevant details are given below: 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 total cost of the consulting job using the ABC system. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
A) $7500
B) $2072
C) $6215
D) $40,715
Correct Answer:
Verified
Q61: Activity-based management (ABM)uses activity-based costs to make
Q70: Activity-based management (ABM)can be used to make
Q83: Nourishmix,Inc.manufactures food processors.The target sales price is
Q89: Activity-based management is not suitable for service
Q100: Target pricing considers all production costs and
Q101: Tierra Plant Services completed a special
Q106: In service companies,activity-based management _.
A)results in more
Q108: Superior Services,Inc.is a consulting firm that offers
Q110: Bar None Legal Services,Inc.is a consulting firm
Q113: Activity-based costing can be used in determining
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents