Anybody know how to do this? Question 18 Superior Services, Inc is a consulting

Question

Anybody know how to do this?

Question 18 Superior Services, Inc is a consulting firm that offers optimal legal solutions. It allocates indire direct labor hours as the allocation base The estimated indirect costs for this year amount to 5160,000 The company is expected to work 8000 direct labor hours during the year The direct labor rate is $300 per hour. Clients are billed at 120% of direct labor cost Last month Superiors consultants spent 180 Inc What is the predetermined overhead allocatio O $27 per hour n rate per direct labor hour? (Round your final answer to the nearest whole dollar.) $20 per hour $889 per hour O 5533 per hour

Explanation / Answer

Predetermine overhead rate = Estimated overhead cost/Estimated labour hour

= 160000/8000

Predetermine overhead rate = 20 per labour hour

So answer is b) $20 per hour

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