What is the budgeted direct labor cost rate per hour?
A local accounting firm employs 20 full-time professionals. The budgeted annual compensation per employee is $40,500. The average chargeable time is 500 hours per client annually. All professional labor costs are included in a single direct-cost category and are allocated to jobs on a per-hour basis.
Other costs are included in a single indirect-cost pool, allocated according to professional labor-hours. Budgeted indirect costs for the year are $787,500, and the firm expects to have 90 clients during the coming year.
A) $18.00 per hour
B) $17.50 per hour
C) $4.05 per hour
D) $2,000 per hour
Answer: A
You might also like to view...
The infancy doctrine allows adults to receive the reasonable value for necessaries of life that they
contract for. Indicate whether the statement is true or false
Which one of the following statements is more of a general characteristic of a service organization, as compared to a manufacturing organization?
A) Output can be inventoried. B) The response time is longer. C) There is less customer contact. D) The facilities tend to be smaller.