12.5 Budgeting in Non-Manufacturing Companies

Specialty Services performs high-end security services. The firm has calculated its total direct labour cost for the next quarter to be $111,000. The firm expects two different types of clients during the coming quarter. Type A clients will require 3.4 hours of direct labour per service and Type B clients will require 10.55 direct labour hours per service. The firm expects 210 Type A clients and 20 Type B clients. What is the firms average direct labour cost per hour?

Select answer from the options below

$120.00

$362.60

$482.60

$69.20