Computing Activity-Based Costing Rates

The partners of Trebbi and Schertzer, a security services firm, decide to implement an activity-based costing system. They identify the following three cost pools and budgeted amounts for each for the coming year: fringe benefits, $140,000; technology support, $80,000; and research support, $300,000. It is determined that the best cost driver for fringe benefits is professional labor dollars; technology support is partner labor hours; and research support is professional labor hours. The two partners have budgeted salaries and billable hours of $150,000 and 1,500 billable hours each for the coming year. There are also eight investigators earning $50,000 and having 1,500 billable hours each.

Required: Compute the budgeted overhead rate for each of the three cost pools. Round your answers to two decimal places

Cost Pool		Budgeted Rate
Fringe benefits			%	of partner labor dollars of professional labor dollars
Technology support		$ 26.67	/	partner labor hour professional labor hour
Research support		$	/	partner labor hour professional labor hour

(THE ANSWER IS NOT 93.3% AND $200 or 70% AND $25.00)