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25 January, 12:22

Mumbai Travel Services provided the following information: Direct labor rate: $ 40 per hour Predetermined allocation rate for indirect costs: $ 22 per direct labor hour If Mumbai Travel records revenue of $ 350 for a job requiring 5 hours of direct labor, then Mumbai Travel will make a profit of $ 40.

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  1. 25 January, 14:15
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    True

    Explanation:

    Labour rate (indirect cost) = $40 per hour

    Labour rate (Direct cost) = $22 per hour

    The total cost per hour is $40 + $22 = 62

    For five hours the total labour cost will be = 62 * 5 = £310

    According to the results, Mumbai travel will make a profit of $ 40.
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