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Neptune Accounting Services Expects Its Accountants to Work a Total

Question 125

Multiple Choice

Neptune Accounting Services expects its accountants to work a total of 24,000 direct labor hours per year.The company's estimated total indirect costs are $240,000.The company uses direct labor hours as the allocation base for indirect costs.What is the indirect cost allocation rate?


A) $10 per hour
B) $20 per hour
C) $100 per hour
D) $120 per hour

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