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scoray [572]
3 years ago
15

Thompson company is a consulting firm and applies indirect overhead costs based on billing hours. the firm expects to have $7,70

0 in indirect costs during the year and bill customers for 700 hours. the cost of direct labor is $60 per hour. thompson company completed a consulting job for joe lock and billed the customer for 20 hours. what was the total cost of the consulting job?
Business
1 answer:
maksim [4K]3 years ago
8 0

The total cost of the consulting job = (Indirect cost per hour + Direct cost per hour ) * Total hours

The total cost of the consulting job = ( $11 per hour + $60 per hour ) * 20 hours

= $ 71 * 20 = $ 1,420

Here , the Indirect cost per hour is $ 11 ( 7,700 / 700 )

Direct cost per hour is $ 60

And the total number of hours billed is 20

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