Question

(EN) Muhammad Al Busaidi QUESTIONS Not yet answered Marked out of COVID 19. an accounting firm, provides consulting and tax planning services for many years, the firms total administrative cost (currently $270,000) has been allocated to services on this basis af billable hours to clients. A recent analysis found that % of the firms billable hours to clients resulted from tax planning services, while 45% resulted from consulting services The firm contemplating a change to activity based costing, has identified three components of administrative cost, as follows: Staff Support $200,000 In-house computing charges 50,000 Miscellaneous office costs 1.50 P Pag question Muhannad Al Busaidi 124362 Total 1 2 3 4 7 8 9 10 11 12 13/14 15 A recent analysis of staff support found a strong correlation with the number of clients served in contrast, in-house computing and miscellaneous office cost varied directly with the number of computer hours logped and amber of client transactions, respectively Consulting clients served totaled 35% of the total client base, consumed of the firm computer hours and accounted for 20% of the total client transactions if the firm switched from its current accounting method to an activity-based costing wstem, the amount of administrativos chargeable to consulting Services would 1617 18 19 20 21 22 23 24 25 2872271282930 adece by $59.500 bi decrease by $58,000 ishte decrease by $86.500 das by 12.500 Type here to search 24 A O 7:55 AM 11