Kirk Co. CPA is preparing activity-based budgets for 2011. The partners expect the firm to generate billable hours for the year as follows:
Data entry | 1,100 hours |
Auditing | 2,400 hours |
Tax | 2,150 hours |
Consulting | 375 hours |
The company pays $8 per hour to data-entry clerks, $40 per hour to audit personnel, $50 per hour to tax personnel, and $50 per hour to consulting personnel. Prepare a schedule of budgeted labor costs for 2011 using activity-based budgeting.
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