Question
Number of employees full-time: 12 Number of employees part-time: 7 Overhead costs allocation base: Staff work-hours (total for full-time and part-time employees) are used as
Number of employees full-time: 12
Number of employees part-time: 7
Overhead costs allocation base: Staff work-hours (total for full-time and part-time employees) are used as a basis for allocating direct and indirect costs to clients. Company books reveal the following information for 2016:
Budgeted Overhead costs = 275,000
Annual Full time Budgeted Salary = 150,000
Annual Part Time Budgeted Salary = 47,000
Total Staff Budgeted Hours (dlh) = 55, 000
Actual Overhead costs = 297,000
Annual Full time Actual Salary = 175,000
Annual Part Time Actual Salary = 50, 000
Total Staff Actual Hours (dlh) = 67, 000
Required:
- Work out the the budgeted indirect-cost rate per dlh and budgeted direct-cost rate, respectively, per dlh? Assume all staff salaries are direct costs (round to 2 decimal places)
- What should be the amount charged to a client if the company uses a normal costing system, where the client has actually used 990 direct labor hours?
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Why CISOs Fail Internal Audit And IT Audit The Missing Link In Security Management How To Fix It
Authors: Barak Engel
1st Edition
1138197890, 978-1138197893
