Use the following labor budget data for Roy & Miller Accounting, LLP.

Partner Salaries$600,000Partner Benefits (40%)240,000Total Partner Compensation$840,000Staff Accountant Salaries$800,000Staff Benefits (40%)320,000Total Staff Compensation$1,120,000

The budgeted overhead cost for the year is $1,764,000. The company has estimated that one-third of the budgeted over-head cost is incurred to support the firm's two partners, and two-thirds goes to support the staff accountants. The current audit bid for Monoco Industries requires $14,000 in direct partner professional labor, $25,000 in direct staff accountant professional labor, $5,100 in direct material.

What is the overhead rate for staff accountants, if separate rates are used for partners and staff accountants?

Multiple Choice

• 52%
• 70%
• 70.6%
• 105.0%
• 140%