Answer the Following Questions Using the Information Below

question 18

Multiple Choice

Answer the following questions using the information below:
A local accounting firm employs 20 full-time professionals. The budgeted annual compensation per employee is $40,500. The average chargeable time is 500 hours per client annually. All professional labor costs are included in a single direct-cost category and are allocated to jobs on a per-hour basis.
Other costs are included in a single indirect-cost pool, allocated according to professional labor-hours. Budgeted indirect costs for the year are $787,500, and the firm expects to have 90 clients during the coming year.
-What is the budgeted direct labor cost rate per hour?

• A) $18.00 per hour
• B) $17.50 per hour
• C) $4.05 per hour
• D) $2,000 per hour

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Definitions:

Irreversibility

The cognitive inability in children to understand that actions can be reversed to return to the original state.

Piagetian Characteristic

Pertaining to the developmental stages and theories of cognitive development introduced by Jean Piaget.

Critical Period

A specific time in an organism's development during which the presence or absence of certain experiences can have long-lasting effects on future development.