Consider the Budget Information for Bert and Ernie Design Firm

question 22

Multiple Choice

Consider the budget information for Bert and Ernie Design firm: Bert and Ernie decide there are two cost pools, design support, which is assigned to jobs based on the number of rooms redone, and facilities costs, which is assigned to jobs based on the number of professional labor hours. The design support cost pool includes design equipment depreciation and samples and books. The lease expense and utilities are considered facilities costs. What is the budgeted rate per cost driver for facilities costs?

• A)$17.50
• B)$1.05
• C)$.70
• D)$37.50