Ask Question
15 April, 21:50

Bass Accounting Services expects its accountants to work a total of 23 comma 000 direct labor hours per year. The company's estimated total indirect costs are $ 322 comma 000. The company uses direct labor hours as the allocation base for indirect costs. What is the indirect cost allocation rate?

+3
Answers (1)
  1. 15 April, 22:19
    0
    Estimated indirect costs allocation rate = $14 per direct labor hour

    Explanation:

    Giving the following information:

    Estimated direct labor hours = 23,000

    Estimated indirect costs = $322,000.

    To calculate the allocation rate, we need to use the following formula:

    Estimated indirect costs allocation rate = total estimated indirect costs for the period / total amount of allocation base

    Estimated indirect costs allocation rate = 322,000/23,000

    Estimated indirect costs allocation rate = $14 per direct labor hour
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Bass Accounting Services expects its accountants to work a total of 23 comma 000 direct labor hours per year. The company's estimated total ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers