Use the Information Below to Answer the Following Question(s)

question 27

Multiple Choice

Use the information below to answer the following question(s) .A dental office is in the process of changing their costing system.Their system currently uses a single direct cost pool (professional labour) and a single indirect cost pool (staff support) .The direct categories in the new, refined costing system include:
1.Professional partner labour.Average total annual compensation of the two partners is $100,000; and, each partner has 2,000 hours of budgeted billable time.2.Dental assistant labour.Average total annual compensation of the four assistants is $22,500 each, and each assistant has 2,000 hours of budgeted billable time.3.Office staff.Average total annual compensation of the two staff members is $15,000 each, and each has 2,000 hours of budgeted billable time.The indirect category in the new refined costing system includes professional liability insurance.The budgeted indirect amount is $200,000, and the allocation base is budgeted professional labour hours.The dentist and dental assistants are considered professional labour hours.
-What would be the new budgeted direct cost rate if they decided to give all of the dental assistants a 10% raise?

• A)$13.000 per hour
• B)$12.375 per hour
• C)$11.250 per hour
• D)$9.875 per hour
• E)$9.125 per hour

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Definitions:

Atm

Standard atmosphere; a unit of pressure defined as 101,325 Pa and used as a reference for atmospheric pressure.

Moles

A unit of measure in chemistry representing 6.02214076 × 10^23 particles of a substance, used to express amounts of a chemical substance.

Temperature

A measure of the average kinetic energy of the particles in a sample, influencing physical states, chemical reactions, and biological processes.

Atm

Short for "atmosphere," a unit of pressure or a reference to the gaseous envelope surrounding a celestial body.