A local accounting firm employs 24 full-time professionals. The budgeted annual compensation per employee is...
70.2K
Verified Solution
Link Copied!
Question
Accounting
A local accounting firm employs 24 full-time professionals. The budgeted annual compensation per employee is $45,000. The average chargeable time is 420 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 $790,000, and the firm expects to have 90 clients during the coming year. What is the budgeted direct labor cost rate per hour? (Round the final answer to the nearest cent.)
$107.14 per hour
$20.90 per hour
$4.46 per hour
$28.57 per hour
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
