Question
Use the following labor budget data for Roy & Miller Accounting, LLP. Partner Salaries $ 900,000 Partner Benefits (30%) 270,000 Total Partner Compensation $ 1,170,000
Use the following labor budget data for Roy & Miller Accounting, LLP.
| Partner Salaries | $ | 900,000 | |
| Partner Benefits (30%) | 270,000 | ||
| Total Partner Compensation | $ | 1,170,000 | |
| Staff Accountant Salaries | $ | 1,200,000 | |
| Staff Benefits (30%) | 360,000 | ||
| Total Staff Compensation | $ | 1,560,000 | |
The budgeted overhead cost for the year is $2,457,000. 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 $25,000 in direct partner professional labor, $36,000 in direct staff accountant professional labor, $4,100 in direct material. What is the overhead rate for partners, if separate rates are used for partners and staff accountants?
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