Pluto Travel Services provided the following information:
Direct labor rate: $50 per hour
Predetermined allocation rate for indirect costs: $22 per direct labor hour
Pluto is negotiating a job with a new client.The job will require 11 hours of direct labor.If Pluto wishes to have at least a 15% gross profit on the revenues,it needs to record $716 of revenues.

Question

Quizplus · Accepted Answer

The Answer of Pluto Travel Services provided the following information:
Direct labor rate: $50 per hour
Predetermined allocation rate for indirect costs: $22 per direct labor hour
Pluto is negotiating a job with a new client.The job will require 11 hours of direct labor.If Pluto wishes to have at least a 15% gross profit on the revenues,it needs to record $716 of revenues.

Pluto Travel Services Provided the Following Information