Dezire Travel Services provided the following information
Direct labor rate: $80 per hour
Predetermined overhead allocation rate for indirect costs: $18 per direct labor hour
If Dezire earns $1,600 for a job requiring 10 hours of direct labor, then Dezire will make a profit of $800.
Indicate whether the statement is true or false
FALSE .Revenue $1,600
Less costs:
Direct labor ($80 x 10 hours) (800 )
Indirect labor ($18 x 10 hours) (180 )
Profit $620
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