You have just made it to Manager at a mid-sized accounting firm. You have always wanted to introduce ABC as a method for tracing internal costs. You have done research on the standards used in firms of this size.

Position Billing                     Rate/Hr

Currently there are : - 

Senior Partner                      $250.00

• Junior Partner                         150.00

Total Billing rates                 $400.00

All partners have billing rates consistent with professional practice standards and clients are billed on the basis of partners’ billing rates, plus 20% of partners’ billing rates as an overhead charge to cover all indirect costs.

Two clients were billed for work performed during the month just ended as follows:

                            Senior Partner         Junior Partner            Totals___

Delta Corp.             10 Hours                 15 Hours                     25 Hours

Zeno Ltd                 15 Hours                 10 Hours                     25 Hours

Total CPA Hrs         25 Hours                 25 Hours                    50 Hours

Required: 

Please provide the details of the invoice that would be prepared on the above basis for billing the individual clients.

Invoice: Time Charges Overhead Total Charges

Senior Partner Junior Partner

Client : Delta Corp

Zeno Ltd