A1 Consulting Services (A1CS) provides various types of consulting services throughout Fiji. It uses job costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients. Other costs incurred by A1CS, but not identifiable with specific clients, are charged to jobs by using a predetermined overhead rate. Clients are billed for directly chargeable costs, overhead and a markup for the profit margin. The following costs have been anticipated for the coming year:

Percentage of cost directly Cost traceable to clients Professional staff salaries $3 000 000 85% Administrative support staff 800 000 60% Travel 400 000 80% Photocopying 90 000 90% Other operating costs 200 000 75% Total $4 490 000Cost Professional staff salaries $55 000 Administrative support staff 5 000 Travel 6 000 Photocopying 1 200 Other operating costs 2 800