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Tina's Interior Design Expects Its Designers Will Work a Total

Question 327

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Tina's Interior Design expects its designers will work a total of 14,000 direct labor hours during the upcoming year. Tina's estimated total indirect costs are $168,000. The indirect cost allocation rate is based on direct labor hours.
A. What is the indirect cost allocation rate?
B. What indirect costs will be allocated to client 332, if one designer works 25 hours?

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