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Author Question: Elite Stationary employs 20 full-time employees and 10 trainees. Direct and indirect costs are ... (Read 498 times)

moongchi

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on: Mar 6, 2021
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$250,000$400,000
Annual salary of each employee$200,000 $250,000
Annual salary of each trainee$40,000$45,000
Total professional labor-hours40,000dlh50,000dlh

When a normal costing system is used, clients using proportionately more full-time employees than trainees will ________.
◦ be over billed for actual resources used
◦ be under billed for actual resources used
◦ be billed accurately for actual resources used
◦ result in an under allocation of direct costs
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by moongchi on Mar 6, 2021

heinisk01

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Ahmed El awad

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Reply #2 on: Aug 23, 2022
thank you
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