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:

Ribosome Inactivating Proteins

Proteins that can inactivate ribosomes, inhibiting protein synthesis and having potential applications in medicine.

Ricin

A highly toxic protein derived from the beans of the castor oil plant Ricinus communis, which can cause severe illness or death if ingested, inhaled, or injected.

Inactivate

The process of making something non-functional or unable to perform its normal function.

Ribosomes

Cell organelles composed of RNA and protein, where protein synthesis takes place.