Use the Following Labor Budget Data for Roy & Miller

question 78

Multiple Choice

Use the following labor budget data for Roy & Miller Accounting, LLP to answer the following Questions
The budgeted overhead cost for the year is $1,260,000. The company has estimated that one-third of the budgeted over¬head cost is incurred to support the firm’s two partners, and two-thirds goes to support the staff accountants. The current audit bid for Monoco Industries requires $18,000 in direct partner professional labor, $30,000 in direct staff accountant professional labor, $5,000 in direct material,
-What is the overhead rate for partners, if separate rates are used for partners and staff accountants?

• A) 90%
• B) 75%
• C) 60%
• D) 225%
• E) 50%

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