Question - Blake Accounting pays Jaclyn Sawyer $63,250 per year. Assume that Blake's accountants are expected to work a total of 12,000 direct labor hours in 2016. Blake's estimated total indirect costs are $192,000 and the allocation base used is direct labor hours.
Requirements -
1. What is Blake's predetermined overhead allocation rate?
2. What indirect costs will be allocated to Client 507 if Sawyer works 11 hours to prepare the financial statements?