Use the Following Information for Questions
Carlos Consulting Inc

question 105

Multiple Choice

Use the following information for questions
Carlos Consulting Inc. provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant. $$\begin{array} { c l } \text { Consultants' wages } & \$ 90,000 \\\text { Fringe benefits } & \$ 22,500 \\\text { Related overhead } & \$ 17,500 \\\text { Supply clerk's wages } & \$ 18,000 \\\text { Fringe benefits } & \$ 4,000 \\\text { Related overhead } & \$ 20,000 \\\text { Profit margin per hour } & \$ 20 \\\text { Profit margin on materials } & 15 \% \\\text { Total estimated consulting hours } & 5,000 \\\text { Total estimated material costs } & \$ 168,000\end{array}$$
-The labor rate per hour is

• A) $42.50.
• B) $26.00.
• C) $41.50.
• D) $46.00.

Grasp the concept of responsibility accounting and the importance of only holding managers accountable for controllable items.

Understand the calculation of cash collections and disbursements within budgeting.

Learn the differences between various budget types (e.g., continuous budget, fixed budget).

Appreciate the benefits and limitations of budgeting.

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Definitions:

Similarity

The state of being similar or alike, often leading to psychological connections or associations.

Proximity

The state, quality, or fact of being close or near; physical closeness.

Gestalt Principle

A theory in psychology suggesting that people tend to organize visual elements into groups or unified wholes when certain principles are applied.

Proximity

The physical closeness or distance between objects or people, which can influence various psychological processes including attraction and the formation of relationships.