Dale,Smith,and Associates,a CPA Firm,is Trying to Determine the Hourly Cost

question 16

Essay

Dale,Smith,and Associates,a CPA firm,is trying to determine the hourly cost of its junior accountants in the auditing department.The following data have been gathered.
$\begin{array}{lc}\text { Monthly salaries for } 4 \text { juniors @ } \$ 3,000 \text { each } & \$ 12,000 \\\text { Monthly auditing department overhead costs } & \$ 83,160 \\\text { Average number of hours worked each month } & 800\text { hr}\end{array}$
Assuming 40 percent of the monthly overhead costs for the auditing department are attributable to the junior accountants,compute the hourly cost of their services.

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Definitions:

Standard Error

A statistical measure of the precision for an estimated population mean.

Online Group

A community or assembly of people who interact with each other through the internet, typically within forums, social media platforms, or dedicated apps.

Face-to-face

Direct interaction or communication between people in the same physical space.

Null Hypothesis

A default hypothesis that there is no significant effect or difference for a particular population or phenomenon.