Answer the Following Questions Using the Information Below

question 158

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 20X3:

-What are the budgeted direct-cost rate and the budgeted indirect-cost rate, respectively, per professional labor-hour?

• A)$27.00; $4.17
• B)$29.80; $5.40
• C)$32.40; $5.00
• D)$27.00; $5.00

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Definitions:

Current Ratio

A liquidity metric that measures a company’s ability to pay short-term obligations with its current assets.

Industry Average

The average performance, metrics, or characteristics of companies within a particular sector.

Current Payables

Short-term obligations or debts a company owes to its creditors that are due within one year.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.