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

question 121

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:
$\begin{array}{lcc}&\text { Budget }&\text { Actual }\\\text { Indirect costs } & \$ 270,000 & \$ 300,000 \\\text { Annual salary of each attorney } & \$ 100,000 & \$ 110,000 \\\text { Annual salary of each paraprofessional } & \$ 29,000 & \$ 30,000 \\\text { Total professional labor-hours } & 50,000 \mathrm{dlh} & 60,000 \mathrm{dlh}\end{array}$
-How much should the client be billed in an actual costing system if 200 professional labor-hours are used?

• A) $5,000
• B) $6,960
• C) $7,480
• D) $6,400

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Definitions:

Registered Retirement Income Fund

A retirement savings plan that holds investment products and pays out retirement income.

Equal withdrawals

Regularly scheduled payments of the same amount taken from an investment or savings account.

Compounded monthly

Interest calculation method where interest is added to the principal sum once a month, affecting the total interest accrued over time.

Compounded monthly

Interest calculation method where interest is added to the principal every month, increasing the amount of future interest accruals.