Solve this question financial accounting King Company is a consulting firm. The firm expects to have $ 45,500 inindirect costs during the year and bill customers for 6,500 hours. The costof direct labor is $ 65 per hour.1. Calculate the predetermined overhead allocation rate for King.2. King completed a consulting job for Gavin Green and billed the customerfor 14 hours. What was the total cost of the consulting?3. If King wants to earn a profit equal to 70% of the cost of a job, how muchshould the company charge Mr. Green?

Step 1: Define Predetermined overhead ratePredetermined overhead rate is the rate that manufacturers…

Answered: King Company is a consulting firm. The…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1PB: Variety Artisans has a bottleneck in their production that occurs within the engraving department....

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