Mumbai Travel Services provided the following information

Direct labor rate: $40 per hour
Predetermined overhead allocation rate for indirect costs: $22 per direct labor hour

If Mumbai Travel earns $350 for a job requiring 5 hours of direct labor, then Mumbai Travel will make a profit of $40.
Indicate whether the statement is true or false


TRUE .Revenue $350
Less costs:
Direct labor ($40 x 5 hour) (200 )
Indirect labor ($22 x 5 hours) (110 )
Profit $40

Business

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