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Determine the overhead rate per direct labour hours

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Question: The consulting firm Ivanhoe employs 50 full time staff. The estimated compensation per employee is $106,800 for 1,780 hours. It charges all direct labour cost to clients. lt includes any other cost in a single indirect cost pool and allocate them based on labour hours. Actual indirect costs were $854,700. Estimated indirect cost for the coming year are $1,420,000. The firm expect to have 63 clients in the coming year.Determine the Overhead rate per direct labour hours.

Reference no: EM133555168

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