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Dexter Accounting Expects Its Accountants to Work for 24,000 Direct

Question 49

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Dexter Accounting expects its accountants to work for 24,000 direct labor hours per year. Dexter's estimated total indirect costs are $240,000. The direct labor rate is $75 per hour. Direct labor hours is the allocation base for indirect costs. If Dexter does a job requiring 40 hours of direct labor, what is the total job cost?


A) $7,000
B) $400
C) $3,400
D) $3,000

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