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Question No. 2 (CLO#3) Scenario 2: Superior Essex, employs 20 full-time employees and 10 trainees. Direct and indirect costs are applied on a professional labor-hour
Question No. 2 (CLO#3) Scenario 2: Superior Essex, employs 20 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 2018: Budget Actual Indirect costs $300,000 $400,000 Annual salary of each employee $200,000 $210,000 Annual salary of each trainee $35,000 $40,000 Total professional labor-hours 20,000 dlh 40,000 dlh Required: How much should a client be billed in a normal costing system when 1,000 professional labor hours are used?
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