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Author Question: Smith and Jones CPA firm employs 12 accountants and 10 paraprofessionals. Direct and indirect costs ... (Read 302 times)

mia

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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:

BudgetActual
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-hours20,000dlh25,000dlh

What are the actual direct-cost rate and the actual indirect-cost rate, respectively, per professional labor-hour?
◦ $63.60; $11.60
◦ $70.00; $14.50
◦ $79.50; $12.40
◦ $63.60; $12.40


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Marked as best answer by mia on Mar 6, 2021

FergA

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mia

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it


meganmoser117

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Reply 3 on: Yesterday
Gracias!

 

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