A Local Accounting Firm Employs 24 Full-Time Professionals

question 139

Multiple Choice

A local accounting firm employs 24 full-time professionals. The budgeted annual compensation per employee is $45,000. The average chargeable time is 420 hours per client annually. All professional labor costs are included in a single direct-cost category and are allocated to jobs on a per-hour basis.
Other costs are included in a single indirect-cost pool, allocated according to professional labor-hours. Budgeted indirect costs for the year are $790,000, and the firm expects to have 90 clients during the coming year.
What is the budgeted direct labor cost rate per hour? (Round the final answer to the nearest cent.)

• A) $28.57 per hour
• B) $20.90 per hour
• C) $4.46 per hour
• D) $107.14 per hour

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Definitions:

Day Residue

Elements from daily experiences that are leftover in the mind and can influence dreams and thoughts.

Freud's Concept

Theories developed by Sigmund Freud that emphasize the role of the unconscious mind, intrapsychic conflicts, and childhood experiences in shaping personality and behavior.

Nightmare

A disturbing dream that can cause feelings of fear, distress, or anxiety, often waking the sleeper.

Monsters

Fictional creatures typically characterized by their frightening appearances or malevolent actions, often found in mythology, folklore, and horror fiction.