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    "question_id": "4442373",
    "url": "\/study-help\/questions\/carlin-and-marley-an-accounting-firm-provides-consulting-and-tax-4442373",
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    "question_creation_date": "Jun 29, 2024 01:47 AM",
    "meta_title": "[Solved] Carlin and Marley, an accounting firm, pr | SolutionInn",
    "meta_description": "Answer of - Carlin and Marley, an accounting firm, provides consulting and tax planning services. For many years, the firm's total | SolutionInn",
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    "question_title_h1": "Carlin and Marley, an accounting firm, provides consulting and tax planning services. For many years, the firm's total administrative cost (currently $330,000) has been allocated",
    "question_title": "Carlin and Marley, an accounting firm, provides consulting and tax planning services.",
    "question_title_for_js_snippet": "Carlin and Marley, an accounting firm, provides consulting and tax planning services  For many years, the firm's total administrative cost (currently $330,000) has been allocated to services on this basis of billable hours to clients  A recent analysis found that 55  of the firm's billable hours to clients resulted from tax planning services, while 45  resulted from consulting services  The firm, contemplating a change to activity based costing, has identified three components of administrative cost, as follows  Staff Suppor t$220,000 In house computing charges70,000 Miscellaneous office costs 40,000 Total $330,000 A recent analysis of staff support found a strong correlation with the number of clients served  In contrast, in house computing and miscellaneous office cost varied directly with the number of computer hours logged and number of client transactions, respectively  Consulting clients served totaled 35  of the total client base, consumed 30  of the firm's computer hours, and accounted for 20  of the total client transactions  If Carlin and Marley switched from its current accounting method to an activity based costing system, the amount of administrative cost chargeable to consulting services would  Multiple Choice decrease by $75,500  change by an amount other than those listed  change, but the amount cannot be determined based on the information presented  decrease by $42,500  increase by $42,500 ",
    "question_description": "<p>Carlin and Marley, an accounting firm, provides consulting and tax planning services. For many years, the firm's total administrative cost (currently $330,000) has been allocated to services on this basis of billable hours to clients. A recent analysis found that 55% of the firm's billable hours to clients resulted from tax planning services, while 45% resulted from consulting services.<\/p> <p><\/p> <p>The firm, contemplating a change to activity-based costing, has identified three components of administrative cost, as follows:<\/p> <p><\/p> <p>Staff Suppor t$220,000<\/p> <p>In-house computing charges70,000<\/p> <p>Miscellaneous office costs 40,000<\/p> <p>Total $330,000<\/p> <p><\/p> <p>A recent analysis of staff support found a strong correlation with the number of clients served. In contrast, in-house computing and miscellaneous office cost varied directly with the number of computer hours logged and number of client transactions, respectively. Consulting clients served totaled 35% of the total client base, consumed 30% of the firm's computer hours, and accounted for 20% of the total client transactions.<\/p> <p><\/p> <p>If Carlin and Marley switched from its current accounting method to an activity-based costing system, the amount of administrative cost chargeable to consulting services would:<\/p> <p>Multiple Choice<\/p> <ul> <li>decrease by $75,500.<\/li> <li>change by an amount other than those listed.<\/li> <li>change, but the amount cannot be determined based on the information presented.<\/li> <li>decrease by $42,500.<\/li> <li>increase by $42,500.<\/li> <\/ul>",
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        "isbn": "1118168879, 9781118168875",
        "edition": "2nd Canadian Edition",
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    "question_posted": "2024-06-29 01:47:18",
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