The company uses direct labor hours as allocation base for


Question - Orbit Financial Services expects its accountants to work 28,000 direct labor hours per year. The company's estimated total direct costs are $220,000. The direct labor rate is $70 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Orbit performs a job requiring 20 hours of direct labor, what is the total job cost?

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Accounting Basics: The company uses direct labor hours as allocation base for
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