Kiwi Consulting Services provides consulting services throughout Australia and New Zealand. It uses a job costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by Kiwi but not identifiable with specific clients are charged to jobs by using a predetermined overhead rate. Clients are billed for directly chargeable costs, overhead and a mark-up for the profit margin. Kiwi's financial controller, Janet Campbell, anticipates the following costs for the coming year:

Percentage of cost directly Cost traceable to clients Professional staff salaries $2 500 000 80% Administrative support staff 500 000 Travel 250 000 95% Photocopying 50 000 Other operating costs 100 000 50% Total $3 400 000Cost Professional staff salaries $40 000 Administrative support staff 3 000 Travel 5 000 Photocopying 500 Other operating costs 1 500