Rouse Consulting computes the cost of each consulting engagement by adding a portion of firmwide … Assignment Help


Rouse Consulting computes the cost of each consulting engagementby adding a portion of firmwide overhead costs to the labor cost ofthe consultants on the engagement. The overhead costs are assignedto each consulting engagement using a cost driver rate based onconsultant labor costs. Rouse ?Consulting’s overhead costs are $5.2million per? year, and total consultant labor cost is estimated at$2.6 million per year.Requirements ?(a) What is RouseRouse ?Consulting’s cost driver? rate??(b) If the consultant labor cost on an engagement is $32,000?,what cost will RouseRouse Consulting compute as the total cost ofthe consulting? engagement?

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