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

question 38

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 is the budgeted direct cost rate per hour for professional partner labour?

• A)$25.00 per hour
• B)$50.00 per hour
• C)$44.50 per hour
• D)$38.00 per hour
• E)$46.00 per hour

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Definitions:

Chemical Imbalance

A hypothesis that mental health conditions are associated with changes or imbalances in brain chemicals or neurotransmitters.

Depressed

A mental health condition characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Sociocultural Approach

A theoretical approach that explores how societal and cultural factors impact individual behavior and cognitive processes.

Psychological Disorders

Mental disorders characterized by significant disturbances in an individual's cognition, emotional regulation, or behavior, often leading to distress or impairment in daily functioning.