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Which of the following is true when using job costing at a professional service firm? Professional labor cost would be considered an indirect cost of

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Which of the following is true when using job costing at a professional service firm? Professional labor cost would be considered an indirect cost of serving a client Professional labor cost would be assigned to client jobs Office rent would be considered a direct cost of servicing a client. none of the answers provided are true. The Big CPA firm strives to achieve a 20% profit on the cost to serve each client. Mary James has a salary of $65,000 a year and is expected to work 2,000 on client engagements during the course of the year. The Firm has determined a indirect cost allocation rate of $25 per hour. What is Ms James hourly billable rate per hour? $32.50 $25 $57.50 $69 The total cost of a manufacturing job should include: Materials Direct labor Manufacturing Overhead True False Jones and Company uses a predetermined manufacturing overhead rate (MOH) to allocate overhead to individual jobs based upon direct labor hours. The following is expected to incur at the beginning of the year MOH $600,000 Direct Labor Hours 60,000 Direct Labor Dollars $900,000 90,000 Machine Hours What is Jones and Company's predetermined MOH? $.67 $10 $6.67 $7

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