As a Service to the Public,the Accounting Department at a Major

question 99

Essay

As a service to the public,the accounting department at a major university provides speakers for budgeting seminars at functions such as club meetings,couples' retreats,and at several local half-way houses and women's shelters.Speakers,who hold doctorate degrees in accounting,are paid by the college of business an hourly rate of $75 plus fringe benefits estimated at 30% of their hourly rate.Since all speaking engagements are in the local area,speakers are paid 10% of their hourly rate for transportation costs.Speakers are paid for their speaking time plus their travel and preparation time.The standard time estimated for each speaking engagement is 1 hour and 30 minutes.
Calculate the standard cost for each engagement.

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Definitions:

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Collusion

A secret or illegal agreement or cooperation between parties to limit competition and manipulate prices or market conditions in their favor.

Allocative Efficiency

Refers to a situation in which the resources in an economy are distributed according to consumer preferences, ensuring that goods are produced in the quantities exactly matching consumer desires.

Unit Costs

Unit costs refer to the cost incurred to produce, store, or acquire one unit of a product or service.