Question 12 An accounting firm completes an audit for a local union and has the following cost information for the year. Indirect labor: 560,000 Office lease: $22,000 Depreciation on the equipment: $8,000 Marketing expense: $20,000 Utilities: $15,000 The firm's direct labor costs are budgeted at 5500.000 for the year and overhead is allocated based on direct labor costs. The firm used 1 partner and 2 audit associates on the audit. Partners are paid $150 per hour while dit associates warn $50 per hour. The partner spent 5 hours on the engagement while the audit associates spent a total of 40 hours. What is the cost of the audit? O $3.500 53.265 33.625 $3.430