Bass Accounting Services expects its accountants to work a total of 28,000 direct labor hours per year. The company's estimated total indirect costs are $336,000. The company uses direct labor hours as the allocation base for indirect costs. What is the indirect cost allocation rate?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bass Accounting Services expects its accountants to work a total of 28,000 direct labor hours per year. The company's estimated total indirect costs are $336,000. The company uses direct labor hours as the allocation base for indirect costs
What is the indirect cost allocation rate?
O A. $24.00 per hour
O B. $120.00 per hour
OC. $14.40 per hour
O D. $12.00 per hour
Transcribed Image Text:Bass Accounting Services expects its accountants to work a total of 28,000 direct labor hours per year. The company's estimated total indirect costs are $336,000. The company uses direct labor hours as the allocation base for indirect costs What is the indirect cost allocation rate? O A. $24.00 per hour O B. $120.00 per hour OC. $14.40 per hour O D. $12.00 per hour
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