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

question 92

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.
Required:
Calculate the standard cost for each engagement.

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Definitions:

Educational Savings Plan

A savings account specifically designed for funding future education expenses, often offering tax advantages or other incentives.

Simple Interest

A method of calculating interest where the interest charge is based only on the principal amount, not on previously earned interest.

Total Interest

The entire amount of interest paid over the life of a loan or financial product.