Pluto Travel Services provided the following information:
Cost allocation rate for direct labor: $40 per hour
Cost allocation rate for indirect costs: $22 per hour
Pluto is negotiating a job with a new client.The job will require 10 hours of direct labor.If Pluto wishes to make at least 15% gross profit on the revenues,it needs to receive $713 of revenues.

Question

Quizplus · Accepted Answer

The Answer of Pluto Travel Services provided the following information:
Cost allocation rate for direct labor: $40 per hour
Cost allocation rate for indirect costs: $22 per hour
Pluto is negotiating a job with a new client.The job will require 10 hours of direct labor.If Pluto wishes to make at least 15% gross profit on the revenues,it needs to receive $713 of revenues.

Pluto Travel Services Provided the Following Information