Halo,IncIs a Consulting Firm That Offers Optimal Legal Solutions

Halo,Inc.is a consulting firm that offers optimal legal solutions.It allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base.The estimated indirect costs for this year amount to $120,000.The company is expected to work 6,000 direct labor hours during the year.The direct labor rate is $200 per hour.Clients are billed at 120% of direct labor cost.Last month,Halo's consultants spent 180 hours on Bloomington,Inc.Calculate the total costs assigned to Bloomington.

A) $39,600
B) $36,000
C) $144,000
D) $3,600