Levy, the president of Enlighten, decided to develop an ABC system to accurately

Question

Levy, the president of Enlighten, decided to develop an ABC system to accurately allocate the acttos reated to the total indirect oost?avoi and information technology (IT) support' The other roievart details aro given below. Estimated Estimated quantity base Activity IT SupportDirect labor hours otal cost of the consulting job using the ABC system. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar) $76,000 56,000 $132.000 3,500 miles 1,250 DLHr Total A. B. $7,500 $23,990 O c. $2.240 O D. $6,720

Explanation / Answer

Direct labor cost 7500 =150*50 Overhead: Travel 9770 =76000/3500*450 IT support 6720 =56000/1250*150 Total cost 23990 Option B is correct

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