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What Is the Calculated Overhead Rate for an Engineering Firm

Question 3

Multiple Choice

What is the calculated overhead rate for an engineering firm that provides inspection and testing services given the following year-end audit information?
Item: Cost ($)
Direct Labor: 922,000
Allowable fringe benefits:452,000
Allowable general overhead: 1,200,000


A) 38%
B) 156%
C) 179%
D) 469%

Correct Answer:

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