Course Title: Cost and Management Accounting

Read the questions carefully and answer accordingly

Elite 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 2018:

Budget Actual Indirect costs $300,000 $400,000 Annual salary of each employee $200,000 $210,000 Annual salary of each trainee $35,000 $40,000 Total professional labor-hours 20,000dlh 40,000dlh

Analyze the cost to be billed for a client in a normal costing system when 1,000 professional labor -hours are used?