Smith and Jones CPA firm employs 12 accountants and 10 paraprofessionals. Direct and indirect costs...
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Accounting
Smith and Jones CPA firm employs 12 accountants and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 2018:
| Budget | Actual |
| Indirect costs | $290,000 | $310,000 |
| Annual salary of each attorney | $90,000 | $105,000 |
| Annual salary of each paraprofessional | $32,000 | $33,000 |
| Total professional labor-hours | 20,000 | dlh | 25,000 | dlh |
What are the actual direct-cost rate and the actual indirect-cost rate, respectively, per professional labor-hour?
A. $70.00; $14.50
B. $79.50; $12.40
C. $63.60; $11.60
D. $63.60; $12.40
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