Baptiste Accounting Services Expects Its Accountants to Work a Total

question 3

Multiple Choice

Baptiste Accounting Services expects its accountants to work a total of 30,000 direct labor hours per year.The company's estimated total indirect costs are $152,000.The direct labor rate is $104 per hour.The company uses direct labor hours as the allocation base for indirect costs.If Baptiste performs a job requiring 52 hours of direct labor and bills the client using a standard markup of 40% of costs,calculate the amount of the client's bill.(Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

• A) $5408
• B) $216,320
• C) $2269
• D) $7940

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Definitions:

Determinant of Demand

A factor that affects the willingness and ability of consumers to buy a product, which can include price, income, tastes, and expectations.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, achieving market balance.

Normal Good

A good for which demand increases as consumer income rises, demonstrating a direct relationship between income and demand.

Allocative Efficiency

Achieved when resources are distributed in a way that maximizes the benefits received by society, aligning production with consumer preferences.