technology consulting firm Assignment | College Homework Help

Southwestern, Inc. is a technology consulting firm focused on Web site development and integration of Internet business applications. The company has computed a predetermined overhead allocation rate of $155 per direct labor hour. The president of Southwestern suspects that her allocation of indirect costs could be giving misleading results, so she decides to develop an ABC system. She identifies three activities: documentation preparation, information technology support, and training. She figures that documentation costs are driven by the number of pages, information technology support costs are driven by the number of software applications used, and training costs are driven by the number of direct labor hours worked. Estimates of the costs and quantities of the allocation bases follow: FF (Click the icon to view the estimates.) Compute the predetermined overhead allocation rate for each activity. Round to the nearest dollar. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Round your answers to the nearest whole dollar. Abbreviation used: IT-information technology.) Predetermined OH allocation rate Document preparation IT support Training Choose from any list or enter any number in the input fields and then continue to the next question 11:57 AM 2 1/29/2020 0 Data Table Document IT support Training Activity Documentation preparation Information technology support Training Estimated Cost Allocation Base 180,000 Pages 72.000 Applications used Estimated Quantity of Allocation Base 4,000 pages 720 applications 5,700 hours 678,000 Direct labor hours Total indirect costs 930,000 Print Done