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ashly138 ashly138
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4 years ago
A local financial consulting firm employs 30 full-time employees. The budgeted compensation per employee is $50,000. The annual maximum chargeable time to each client is 1,000 hours. Clients always receive their full amount of time. All labour costs are included in a single direct-cost category and are traced to jobs on a per-hour basis.
Any other costs are included in a single indirect-cost pool, allocated according to professional labour-hours. Budgeted indirect costs for the year are $1,050,000, and the firm expects to have 60 clients during the coming year.
What is the budgeted indirect-cost rate per hour?
A) $1,050.00 per hour
B) $50.00 per hour
C) $35.00 per hour
D) $17.50 per hour
E) $10.00 per hour
Textbook 

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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pachopacho
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4 years ago
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More questions for this book are available here
D
Explanation:  D) Indirect cost rate per hour = $1,050,000/60,000 = $17.50 per hour
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-Michigan State University

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