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

question 8

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:
$\begin{array}{lcc}&\text { Budget }&\text { Actual }\\\text { Indirect costs } & \$ 270,000 & \$ 300,000 \\\text { Annual salary of each attorney } & \$ 100,000 & \$ 110,000 \\\text { Annual salary of each paraprofessional } & \$ 29,000 & \$ 30,000 \\\text { Total professional labor-hours } & 50,000 \mathrm{dlh} & 60,000 \mathrm{dlh}\end{array}$
-What are the actual direct-cost rate and the actual 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:

Instincts

Innate, typically fixed patterns of behavior in animals in response to certain stimuli.

Preference Test

A method used to determine an individual’s preference or choice between two or more options, often used in psychological and market research.

Directionality

The quality or condition of having a specific direction, orientation, or tendency.

Activation

Involves the arousal of the brain or body to a state of increased responsiveness to stimuli.