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’sestimated total indirect costs are $192,000 and the allocation base used is direct labor hours.


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 statementsfinancial statements?