Darrius Travel Services provided the following information:
Cost allocation rate for direct labour: $40 per hour
Cost allocation rate for indirect costs: $22 per hour
If Darrius receives $700 for a job requiring 12 hours of direct labour,it will make a profit of $44.

Question

Quizplus · Accepted Answer

The total cost for the job is $744 (12 hours x $40 for direct labour + 12 hours x $22 for indirect costs), which is more than the $700 received, resulting in a loss, not a profit.

Darrius Travel Services Provided the Following Information