Question
Use the following labor budget data for Roy & Miller Accounting, LLP. Partner Salaries$700,000Partner Benefits (30%)210,000Total Partner Compensation$910,000Staff Accountant Salaries$700,000Staff Benefits (30%)210,000Total Staff Compensation$910,000 The
Use the following labor budget data for Roy & Miller Accounting, LLP.
Partner Salaries$700,000Partner Benefits (30%)210,000Total Partner Compensation$910,000Staff Accountant Salaries$700,000Staff Benefits (30%)210,000Total Staff Compensation$910,000
The budgeted overhead cost for the year is $1,747,200. The company has estimated that one-third of the budgeted overhead 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 $15,000 in direct partner professional labor, $26,000 in direct staff accountant professional labor, $5,200 in direct material.
What is the overhead rate based on a single cost driver (rounded to the nearest percentage)?
Multiple Choice
- 77%
- 96%
- 250 %
- 95%
- 64%
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