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Author Question: Elite Stationary employs 20 full-time employees and 10 trainees. Direct and indirect costs are ... (Read 125 times)

biggirl4568

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Elite Stationary employs 20 full-time employees and 10 trainees. Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and trainee hours. Following is information for 2018:

BudgetActual
Indirect costs$300,000$400,000
Annual salary of each employee$200,000 $210,000
Annual salary of each trainee$35,000$40,000
Total professional labor-hours20,000dlh40,000dlh

How much should a client be billed in a normal costing system when 1,000 professional labor-hours are used?
◦ $215,000
◦ $125,000
◦ $130,000
◦ $145,000


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Marked as best answer by biggirl4568 on Mar 6, 2021

helenmarkerine

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biggirl4568

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


komodo7

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Reply 3 on: Yesterday
Wow, this really help

 

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