Green Consultants Pty Ltd specialise in consulting on landscape design. The company developed a predetermined charge-out rate

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Green Consultants Pty Ltd specialise in consulting on landscape design. The company developed a predetermined charge-out rate based on hours for each of its consultants on 1 July 2019 to assign the cost of labour directly associated with each client job for the coming year. The company employs four consultants who each work 40 hours per week for 48 weeks of the year;

20% of each consultant’s total yearly labour time is not directly chargeable to client jobs. The budgeted total labour cost for one of the consultants, G. Smith, is $92 160.

Required

(a) Determine the hourly charge-out rate to be assigned as labour cost to all client jobs on which G. Smith works to 30 June 2020. (Ignore GST.) If Smith worked for 1500 hours for clients during the year, what is the total labour cost charged for Smith?

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Accounting

ISBN: 9780730363224

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Beattie Claire, Hellmann Andreas, Maxfield Jodie

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