ABC Consulting Services provides consulting services throughout Australia and New Zealand. It uses a job costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by ABC 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 mark-up for the profit margin.

ABC's financial controller, Janet Campbell, anticipates the following costs for the coming year:

Percentage of cost directly traceable to clients $ Professional staff salaries 2 500 000 80% Administrative support staff 500 000 50% Travel 250 000 95% Photocopying 50 000 95% Other operating costs 100 000 50% Total 3 300 000 Cost S Professional staff salaries 10 000 Administrative support staff 8 000 Travel 5,000 Photocopying 500 Other operating costs 1500