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

question 20

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.
$\begin{array}{lc}\text { Monthly salaries for } 4 \text { juniors @ } @ 3,000 \text { each } & \$ 12,000 \\\text { Monthly auditing department overhead costs } & \$ 83,160 \\\text { Average number of hours worked each month } & 800 \mathrm{hr}\end{array}$
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:

Pressure Wave

A type of wave in which the oscillations occur in the direction of propagation, often found in sound waves.

Cochlea

A spiral-shaped, fluid-filled inner ear structure; it is essential for hearing as it transforms sound into nerve impulses.

Sensory Receptors

Specialized cells or nerves that detect changes in the environment and send signals to the brain.

Eardrum

The thin, membrane-like structure that separates the outer ear from the middle ear and vibrates in response to sound waves.