Sue Shelton, CPA, pays her new staff accountant, Diane,a salary equivalent to $27 per hour while Sue receives a salary equivalent to $37 per hour. The firm's predetermined indirect cost allocation rate for the year is $13 per hour. Shelton bills for the firm's services at 35% over cost. Assume Sue works 1 hours and Diane works 7 hours preparing a tax return for Melinda O'Brien.

1. What is the total cost of preparing O'Brien's tax return?

2. How much will Sue bill O'Brien for the tax work

1. What is the total cost of preparing

O'Brien's

tax return?

Enter the direct and indirect costs for preparing

O'Brien's

tax return.

Direct Cost: Sue's time		hrs.
Direct Cost: Diane's time		hrs.
Total Direct Cost:
Indirect Cost:		hrs.
Total cost of preparing tax return