Question
Financial Planning Partners Inc., employs 12 fulltime CPAs and 10 paraprofessionals. Direct and indirect costs are applied on a professional laborhour basis that includes both
Financial Planning Partners Inc., employs 12 fulltime CPAs and 10 paraprofessionals. Direct and indirect costs are applied on a professional laborhour
basis that includes both attorney and paraprofessional hours. Following is information for 2018:
| Budget | Actual | ||||
| Indirect costs | $310,000 | $296,000 | |||
| Annual salary of each attorney | $101,000 | $111,000 | |||
| Annual salary of each paraprofessional Total professional laborhours | $31,000 50000dlh | $32,000 55000dlh | |||
| When using a normal costing system, yearend accounting records will show that indirect costs are ________
A.perfectly allocated B.underallocated C.overallocated D.within budget
|
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