Eisenhower Services, Inc., a management consulting firm, has been using a single predetermined overhead allocation rate with direct labor hours as the allocationpase to allocate overhead costs. The president of Eisenhower decided to develop an ABC system to more accurately allocate the indirect costs. She identified twoactivities related to the total indirect costs-travel and information technology (IT) support. The other relevant details are given below:Estimated quantity of allocationbaseActivityAllocation baseEstimated costs1,800 miles7,400 DLH.Travel$10,00072,000$82,000Miles drivenIT SupportDirect labor hoursTotalDuring the current month, Eisenhower's consultants spent 240 labor hours for Miller, Inc. The job required the professionals to travel 360 miles in total. Direct Labor ibilled at $55 per hour. Determine the total cost of the consulting job using the ABC system. (Round any intermediate calculations to the nearest cent and your finalanswer to thé nearest dollar.)O A. $15,535O B. $13,200OC. $17,537O D. $4,337

At the beginning of the accounting cycle, a predetermined overhead rate is established by dividing…

isenhower Services, Inc., a management consulting firm, has been using a single predetermined overhead ase to allocate overhead costs. The president of Eisenhower decided to develop an ABC system to more accurately allocate the indirect costs. She identitied M ctivities related to the total indirect costs-travel and information technology (IT) support. The other relevant details are given below: Estimated quantity of allocation base Activity Travel IT Support Allocation base Estimated costs $10,000 72,000 $82,000 Miles driven 1,800 miles Direct labor hours 7,400 DLH. Total During the current month, Eisenhower's consultants spent 240 labor hours for Miller, Inc. The job required the professionals to travel 360 miles in total. Direct Lal billed at $55 per hour. Determine the total cost of the consulting job using the ABC system. (Round any intermediate calculations to the nearest cent and your fin answer to thé nearest dollar.) A. $15,535 B. $13,200 C. $17,537 O P. $4,337

isenhower Services, Inc., a management consulting firm, has been using a single predetermined overhead ase to allocate overhead costs. The president of Eisenhower decided to develop an ABC system to more accurately allocate the indirect costs. She identitied M ctivities related to the total indirect costs-travel and information technology (IT) support. The other relevant details are given below: Estimated quantity of allocation base Activity Travel IT Support Allocation base Estimated costs $10,000 72,000 $82,000 Miles driven 1,800 miles Direct labor hours 7,400 DLH. Total During the current month, Eisenhower's consultants spent 240 labor hours for Miller, Inc. The job required the professionals to travel 360 miles in total. Direct Lal billed at $55 per hour. Determine the total cost of the consulting job using the ABC system. (Round any intermediate calculations to the nearest cent and your fin answer to thé nearest dollar.) A. $15,535 B. $13,200 C. $17,537 O P. $4,337

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 5E: From the choices presented in parentheses, choose the appropriate term for completing each of the...

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