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

Partner Salaries	$	800,000
Partner Benefits (40%)		320,000
Total Partner Compensation	$	1,120,000
Staff Accountant Salaries	$	1,000,000
Staff Benefits (40%)		400,000
Total Staff Compensation	$	1,400,000

The budgeted overhead cost for the year is $2,318,400. The company has estimated that one-third of the budgeted over-head cost is incurred to support the firms two partners, and two-thirds goes to support the staff accountants. The current audit bid for Monoco Industries requires $24,000 in direct partner professional labor, $35,000 in direct staff accountant professional labor, $4,000 in direct material. What is the overhead rate for staff accountants, if separate rates are used for partners and staff accountants?

Multiple Choice

• 55%

• 69%

• 66.2%

• 110.4%

• 138%