Question

Cardinal Design is an ordinem. The r es Cardin Des races direct labor, ansing costs and to jobs based on a predetermined indirect cont a to t wystam in which each clients a re loss directly to each o t allocate indirect computed as a percentage of direct labore At the beginning of the current year, managing partner Donna Dohery prepared the following budget the con la viow the prepared budget) Later that same year in November, Cardin Designe d several dients Records for per here Click the loon to view the records for two dio ) Read the rements Requirement 1. Come Cardinal Designs predetermined indirect location rate for the current year antify the form the compute that there a whole number) Predamined indirect coat tocation rate Data Table 1.200.000 Direct labor hours professional) .......... Direct labor costs professional.........$ Support starf salaries . $ Computer lase payments.... 5 Officerent. ..5 Print Done Choose from any list or enter any number in the rout fields and then click Check Answer

Answer 1

Requirement: 1

Estimated OH Cost	/	Estimated Direct Labor Cost	=	Predetermined Indirect Cost Allocation Rate
$276,000	/	$ 1,200,000	=	23%

Explanation:

1) Estimated OH Cost:

= $ 140,000 + $47,000 + $ 27,000 + $62,000

= $276,000