Question

Amy Jentes is a new staff accountant at Johnstone & Associates. She is paid a salary of $ 60,000 per year and is expected to work 2,000 hours per year on client jobs. The firm’s indirect cost allocation rate is $ 25 per hour. The firm would like to achieve a profit equal to 30% of cost.

1. Convert Amy’s salary to an hourly wage rate for billing purposes.
2. Calculate the professional billing rate Johnstone & Associates would use for billing out Amy’s services.



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  • CreatedAugust 27, 2014
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