CLM Accountants Pty Ltd offer a range of accounting services. The company uses a costing system that estimates the cost of each client's job by accumulating the costs of the professional labour, that works on the actual job (direct labour cost), plus a charge for overhead.

The cost of the specialized labour and the associated charge out rates used for the clients are as follows;

Cost of Labour

Chargeout rate for billing to clients

Senior Accountants assistant Graduate Accountant

Senior Accountant

$40 $200

$20 $140 $150 $450

The overhead rate is based on the specialized labour costs, which are budgeted at $250,000 for the current year.

The budgeted overhead costs for the whole of the business for the current year are as follows;

Management Salaries

Support staff salaries

Depreciation-Computer hardware Printing and Stationery

Telephone and internet

Insurance

Depreciation-Office furniture Rent

Electricity

Advertising

$170,000 $110,000 $140,000

$22,000 $15,000 $45,000

$8,000 $110,000 $16,000 $14,000

During the month of September, the company worked on three clients jobs. These jobs required the following labour (in hours);

Client Name

Senior Accountant - Assistant

Graduate Accountant

Senior Accountant

Royal Pines Emerald Lakes Colonial

20 90 35 85 55 120

5 10 15

(2.5 marks) (4.5 marks)

Required: (Show all workings and calculations where required)

1. Calculate the overhead recovery rate to be used by CLM Accountants Pty Ltd.
2. Calculate the cost of the jobs for each of the three clients.

c. Calculate the fees that will be charged to each of the clients based on the provided chargeout

rates for billing to clients.(3 marks)