Financial Planning Partners Inc., employs 12 fulltime CPAs and 10 paraprofessionals. Direct and indirect costs...
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Financial Planning Partners Inc., employs 12 fulltime CPAs and 10 paraprofessionals. Direct and indirect costs are applied on a professional laborhour basis that includes both attorney and paraprofessional hours. Following is information for 2018:
| Budget | Actual | ||||
| Indirect costs | $270,000 | $295,000 | |||
| Annual salary of each attorney | $106,000 | $116,000 | |||
| Annual salary of each paraprofessional | $34,500 | $35,500 | |||
| Total professional laborhours | 50,000 | dlh | 60,000 | dlh |
When using a normal costing system, yearendaccounting records will show that indirect costs are ________.
A.within budget
B.underallocated
C.perfectly allocated
D.overallocated
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