Question
ABC Stationary employs 20 full-time employees and 10 trainees. Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and
ABC Stationary employs 20 full-time employees and 10 trainees. Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and trainee hours. Following is information for 2023:
Budget
Indirect costs: $200,000
Annual salary of each employee: $100,000
Annual salary of each trainee: $25,000
Total professional labor-hours: 50,000
Actual
Indirect costs: $300,000
Annual salary of each employee: $110,000
Annual salary of each trainee: $30,000
Total professional labor-hours: 60,000
How much should a client be billed in a normal costing system when 1,400 professional labor-hours are used?
Group of answer choices
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