Answer the Following Questions Using the Information Below:
Mark Papers

question 17

Multiple Choice

Answer the following questions using the information below:
Mark Papers employs 15 full-time employees and 10 trainees. Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and trainee hours. Following is information for 2014:
$\begin{array}{lcc}&\text { Budget }&\text { Actual }\\\text { Indirect costs } & \$ 200,000 & \$ 300,000 \\\text { Annual salary of each employee } & \$ 100,000 & \$ 110,000 \\\text { Annual salary of each trainee } & \$ 25,000 & \$ 30,000 \\\text { Total professional labor-hours } & 50,000 \mathrm{dlh} & 60,000 \mathrm{dlh}\end{array}$
-How much should a client be billed in a normal costing system when 1,000 professional labor-hours are used?

• A) $33,600
• B) $29,800
• C) $39,000
• D) $41,000

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