Financial Planning Partners Inc., employs 12 full−time CPAs and 10 paraprofessionals. Direct and indirect costs are...

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Financial Planning Partners Inc., employs 12 full−time CPAs and 10 paraprofessionals. Direct and indirect costs are...

Financial Planning Partners Inc., employs 12 full−time CPAs and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor−hour basis that includes both attorney and paraprofessional hours. Following is information for 2018:

	Budget		Actual
Indirect costs	$270,000		$295,000
Annual salary of each attorney	$106,000		$116,000
Annual salary of each paraprofessional	$34,500		$35,500
Total professional labor−hours	50,000	dlh	60,000	dlh

When using a normal costing system, year−endaccounting records will show that indirect costs are ________.

A.within budget

B.underallocated

C.perfectly allocated

D.overallocated

business accounting

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Answer 1

Answer #1

Answers Budgeted Indirect cost $ 270000 Total professional Cabor hours = 50,000 dlh Cost per hour 870,000/50000 =$5.4 When ap

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Answer 2

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