Question

Render Co. CPA is preparing activity-based budgets for 2019. The partners expect the firm to generate billable hours for the year as follows:

Data entry	1,050	hours
Auditing	2,350	hours
Tax	2,080	hours
Consulting	330	hours

The company pays $11 per hour to data-entry clerks, $39 per hour to audit personnel, $54 per hour to tax personnel, and $54 per hour to consulting personnel.

Prepare a schedule of budgeted labor costs for 2019 using activity-based budgeting.

L Lumpany pays $11 per hour to data-entry clerks, $39 per hour to audi to consulting personnel. Hint Prepare a schedule of budgeted labor costs for 2019 using activity-based Print RENDER CO. CPA Activity-Based Budget For The Year Ending December 31, 2019 Budgeted Budgeted Budgeted Hours Rate/hour Cost Data entry Auditing Tax Consulting Total

Answer 1

The correct answer is :

	Budgeted Hours	Budgeted Rate / hour	Budgeted Cost
Data Entry	1,050	11	11,550
Auditing	2,350	39	91,650
Tax	2,080	54	112,320
Consulting	330	54	17,820
Total	5,810		233,340

Note:

Budgeted Cost = Budgeted Hours * Budgeted Rate / hour