Answer the Following Questions Using the Information Below:
Mark Papers

question 13

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:
$\begin{array}{lcc}&\text { Budget }&\text { Actual }\\\text { Indirect costs } & \$ 200,000 & \$ 300,000 \\\text { Annual salary of each employee } & \$ 100,000 & \$ 110,000 \\\text { Annual salary of each trainee } & \$ 25,000 & \$ 30,000 \\\text { Total professional labor-hours } & 50,000 \mathrm{dlh} & 60,000 \mathrm{dlh}\end{array}$
-What are the budgeted direct-cost rate and the budgeted indirect-cost rate,respectively,per professional labor-hour?

• A) $30.00; $4.50
• B) $35.00; $4.00
• C) $32.40; $5.00
• D) $27.00; $5.00

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Definitions:

Melanin

A pigment produced by melanocytes in the skin, responsible for hair, skin, and eye color, and provides protection against UV radiation.

UV Radiation

A form of electromagnetic radiation with a wavelength shorter than that of visible light but longer than X-rays, capable of causing skin damage and other health effects.

Tactile

Relating to the sense of touch or the perception of pressure, texture, and vibration by the skin and other organs.

Lamellated Corpuscles

Also known as Pacinian corpuscles, they are nerve endings in the skin responsible for sensitivity to vibration and pressure.