1. Calculate the revised indirect-cost allocation rate per professional labor-ho

Question

1. Calculate the revised indirect-cost allocation rate per professional labor-hour for Wharton Associates when total indirect costs are $200,000. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) per professional labor hour 2. Compute the costs of the Steger Enterprises and Bluestone Inc. jobs if Wharton Associates had used its refined costing system with multiple direct-cost categories and one indirect-cost pool. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 7 Instruction tab you will be marked wrong. ) Steger Enterprises Bluestone Inc. 0 Direct costs: Direct professional labor 12 Research support labor 13 Computer time 14 Travel and allowances 15 Telephone/faxes 16 Photocopying 17 Total direct costs 18 Indirect costs allocated 19 Total costs of job INSTRUCTIONSJOBFILES ENTERANSWERS

Explanation / Answer

1. Total Indirect costs / Professional labor hours = $200000/5000 hours = $40 per professional labor hour

2.

Steger Enterprises Bluestone Inc. Direct costs: Direct professional labor 480000 320000 Research support labor 36000 77000 Computer time 8000 32000 Travel and allowances 14000 84000 Telephone/faxes 5000 24000 Photocopying 6000 14000 Total direct costs 549000 551000 Indirect costs allocated 120000 80000 Total costs of job 669000 631000

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