Q1 A consultant is paid a salary of $40,000 per year.Her employer's share of CPP is 4.95% and of EI is 2.52%.Assuming that the consultant works 230 days per year and is productive for 75% of that time, her daily cost rate to the company is closest to

Select one:

a.$140

b.$173

c.$249

d.$187

Q2 Grant & McKenzie is a firm of financial advisors that needs to calculate an hourly rate to charge customers for its services.

The average salary cost for its advisers is $50,000.The employer's share of CPP and EI is paid to the government as 4.95% and 2.52%, respectively.Each adviser has a four-week annual holiday and there are 10 days per year when the firm closes for holidays.Each adviser is expected to do 25 chargeable hours of work per week for clients; the remainder of the 40-hour week is spent on administrative work.

What hourly rate (to the nearest hour) would cover the cost of each financial adviser?

Select one:

a.$43.78

b.$46.72

c.$41.33

d.$29.20

Q3 Local bank does not know how much of its salaries related to cheque processing are fixed and how much are variable.However, total costs have been estimated at $750,000 for processing of 1,000,000 transactions and $850,000 for processing of 1,200,000 transactions.

What are the variable costs per transaction?

Select one:

a.$2.00

b.$0.75

c.$0.71

d.$0.50

Q4 Local bank does not know how much of its salaries related to cheque processing are fixed and how much are variable.However, total costs have been estimated at $750,000 for processing of 1,000,000 transactions and $850,000 for processing of 1,200,000 transactions.

What are the fixed costs?

Select one:

a.$200,000

b.$40,000

c.$250,000

d.$0

Q5 A company has 5 employees who have a cost of $100 per day each but currently have no work to do; this situation is expected to last for the next two weeks.The company is considering accepting a special order that will take 5 employees one week each, commencing immediately.The work will require supervision, equivalent to 10% of the variable labour time, but all of the supervisors are very busy.Supervision costs are normally $200 per day but additional supervision will involve overtime at the rate of $300 per day.The relevant cost for the order is:

Select one:

a.$750

b.$1,250

c.$3,000

d.$3,250