ZuoTi.Pro
Question

L & L, CPAs, employs two full-time professional CPAs and five support employees. Budgeted direct salary...

L & L, CPAs, employs two full-time professional CPAs and five support employees. Budgeted direct salary costs include $160,000 for each CPA. The support employees are considered as indirect costs, and this cost was budgeted for $221,000 although the actual cost was $246,000. Actual salaries were $144,000 for each CPA. Direct and indirect costs are applied on a CPA-labor-hour basis. Total budgeted CPA-labor-hours were 4,000. If a client used 600 labor-hours, what are the budgeted direct-cost rate and the budgeted indirect-cost rate, respectively?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Budgeted direct cost rate = Budgted cost/budgeted labor hours

= 160,000*2/4,000

=$80 per CPA hour

Indirect rate = 221000/4000 =$55.25 per hour

Amount applied is as follows:

Direct =80*600 =$48,000

Indirect = 600*55.25 =$33,150

0 0
Add a comment
Know the answer?
Add Answer to:
L & L, CPAs, employs two full-time professional CPAs and five support employees. Budgeted direct salary...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 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...

  • QUESTION 18 Sara employs 25 professional cleaners. Budgeted costs total $900,000 of which $525,000 are direct...

    QUESTION 18 Sara employs 25 professional cleaners. Budgeted costs total $900,000 of which $525,000 are direct costs. Budgeted indirect costs are $375,000 and actual indirect costs were $396,900. Budgeted professional labor-hours are 500,000 and actual hours were 504,000. What is the budgeted direct cost-allocation rate? $1.80 per hour $1.7857 per hour $0.75 per hour $1.05 per hour

  • Advantage Inc. employs 27 professional cleaners. Budgeted costs total $1,856,400 of which $1,606,500 is direct costs....

    Advantage Inc. employs 27 professional cleaners. Budgeted costs total $1,856,400 of which $1,606,500 is direct costs. Budgeted indirect costs are $809,200 and actual indirect costs were $798,000. Budgeted professional labor-hours are 1,190,000 and actual hours were 1,326,000. What is the budgeted direct cost - allocation rate? (Round the final answer to the nearest cent.) O A. $1.35 per hour B. $1.40 per hour C. $1.56 per hour OD. $0.68 per hour

  • 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 $300,000 Actual $309,000 $118,000 $128.000 Indirect costs Annual salary of each attorney Annual salary of each paraprofessional Total professional labor- hours $31,500 $32,500 50,000 dlh 56,000 din When using a normal costing system, year-end accounting records will show that indirect costs are Select one: A....

  • A local accounting firm employs 24 full-time professionals. The budgeted annual compensation per employee is $45,000....

    A local accounting firm employs 24 full-time professionals. The budgeted annual compensation per employee is $45,000. The average chargeable time is 420 hours per client annually. All professional labor costs are included in a single direct-cost category and are allocated to jobs on a per-hour basis. Other costs are included in a single indirect-cost pool, allocated according to professional labor-hours. Budgeted indirect costs for the year are $790,000, and the firm expects to have 90 clients during the coming year....

  • 2 Kahn & Associates is a low firm sp i n d l ated work employs...

    2 Kahn & Associates is a low firm sp i n d l ated work employs 25 professionals partners and 18 associates) who work direct with clients Them e budete total compensation per professional or 2017 is $110.000. Each professionalisbudpated to havn 2000 hab hours to clients in 2017. All professionals work for Clients to their maximum 2.000 billable hours available. All professional labor costs are included in a single direct-cost category and are traced to jobs on a per...

  • Francis and Hartley Law Office employs 12 full−time attorneys and 10 paraprofessionals. Direct and indirect costs...

    Francis and Hartley Law Office employs 12 full−time attorneys 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 $320,000 $330,000 Annual salary of each attorney $120,000 $130,000 Annual salary of each paraprofessional $35,000 $36,000 Total professional labor−hours 40,000 dlh 50,000 dlh How much should the client be billed in an actual costing system if 150 professional labor−hours are​ used?...

  • Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs...

    Roiann and Dennett Law Office employs 12 full-time attorneys 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 2014:                                                                                                          Budget                  Actual                 Indirect costs $270,000              $300,000                 Annual salary per attorney $100,000              $110,000                 Annual salary per paraprofessional $ 29,000               $ 30,000                 Total professional labor-hours 50,000 dlh          60,000 dlh What would be the total costs in a normal costing system if 200 professional...

  • Kidman & Associates is a law firm specializing in labor relations and employee-related work. It employs...

    Kidman & Associates is a law firm specializing in labor relations and employee-related work. It employs 25 professionals (10 partners and 15 associates) who work directly with its clients. The average budgeted total compensation per professional for 2017 is $119,000. Each professional is budgeted to have 1,750 billable hours to clients in 2017. All professionals work for clients to their maximum 1,750 billable hours available. All professional labor costs are included in a single direct-cost category and are traced to...

  • materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base...

    materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2016, Anderson budgets 2017 assembly-support costs to be $8,300,000 and 2017 direct labor-hours to be 166.000. At the end of 2017, Anderson is comparing the costs of several jobs that were started and completed in 2017 (Click the icon to view the data) Read the requirements Requirement 1. Compute the (a) budgeted indirect.cost rate and (b) actual indirect.cost...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT