Homework Clinic
Social Science Clinic => Accounting => Topic started by: HudsonKB16 on Mar 6, 2021
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A local accounting firm employs 28 full-time professionals. The budgeted annual compensation per employee is $41,000. The average chargeable time is 430 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 $787,000, and the firm expects to have 95 clients during the coming year.
What is the budgeted indirect-cost rate per hour?
◦ $6.86 per hour
◦ $65.37 per hour
◦ $28.10 per hour
◦ $19.27 per hour
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$19.27 per hour