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Mark Papers employs 15 full-time employees and 10 trainees. Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and
Mark Papers employs 15 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 2014:
Budget Actual
Indirect costs $200,000 $300,000
Annual salary of each employee $100,000 $110,000
Annual salary of each trainee $25,000 $30,000
Total professional labor-hours 50,000 dlh 60,000 dlh
How much should a client be billed in a normal costing system when 500 professional labor-hours are used?
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