The Law Firm of Smith & Jones Has a Staff

question 168

Multiple Choice

The law firm of Smith & Jones has a staff of 30 lawyers and administrative staff.Budgeted total costs of the firm total $4,000,000 of which $2,500,000 is direct-labor costs.Assuming that the remaining costs are indirect and direct-labor cost is the allocation base,calculate the budgeted indirect cost rate.

• A) 38 of direct-labor cost
• B) 60% of direct-labor cost
• C) 63% of direct-labor cost
• D) 160% of direct-labor cost

---

Definitions:

Bill Of Lading

A legal document issued by a carrier to a shipper, detailing the type, quantity, and destination of the goods being carried.

Title

A legal term referring to the legal right of ownership of property or asset.

Gem Vehicles

Electric vehicles produced by Global Electric Motorcars, known for their eco-friendly and compact designs suitable for low-speed transportation needs.

F.O.B.

An international commercial term defining at which point the risk and expense of shipped goods transfer from the seller to the buyer; F.O.B. stands for "Free On Board."