Answer the Following Questions Using the Information Below:
Roiann and Dennett

question 121

Multiple Choice

Answer the following questions using the information below:
Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 2014:
$\begin{array}{lcc}&\text { Budget }&\text { Actual }\\\text { Indirect costs } & \$ 270,000 & \$ 300,000 \\\text { Annual salary of each attorney } & \$ 100,000 & \$ 110,000 \\\text { Annual salary of each paraprofessional } & \$ 29,000 & \$ 30,000 \\\text { Total professional labor-hours } & 50,000 \mathrm{dlh} & 60,000 \mathrm{dlh}\end{array}$
-How much should the client be billed in an actual costing system if 200 professional labor-hours are used?

• A) $5,000
• B) $6,960
• C) $7,480
• D) $6,400

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Definitions:

Equipment Utilization

A measure of how effectively a piece of equipment is being used, typically expressed as a percentage, indicating the ratio of actual operating time to available time.

Restaurants

Establishments that prepare and serve food and drinks to customers in exchange for money, varying widely in style and cuisine.

Swift Movement

Refers to the quick and efficient motion or transfer of objects, data, or processes from one point to another.