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

Partner Salaries	$	300,000
Partner Benefits (40%)		120,000
Total Partner Compensation	$	420,000
Staff Accountant Salaries	$	500,000
Staff Benefits (40%)		200,000
Total Staff Compensation	$	700,000

The budgeted overhead cost for the year is $1,209,600. The company has estimated that one-third of the budgeted overhead 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 $16,000 in direct partner professional labor, $30,000 in direct staff accountant professional labor, $4,300 in direct material. If overhead is applied on the Monoco engagement based on two separate cost drivers, what is the cost of the engagement?

Multiple Choice

$104,520

$84,860

$49,920