(L.OBJ. 1) Using ABC to allocate costs and compute profit [10—15 min] Refer to Short Ex...

(L.OBJ. 1) Using ABC to allocate costs and compute profit [10—15 min]

Refer to Short Exercises 17-7 and 17-8. Suppose Antics’ direct labor rate was $350 per hour, the documentation cost was $32 per page, the information technology support cost was $210 per application, and training costs were $100 per direct labor hour. The Crickett engagement used the following resources last month:

Requirements

1. Compute the cost assigned to the Crickett engagement, using the ABC system.

2. Compute the operating income from the Crickett engagement, using the ABC system.