Leopold & Olney LLP has 5 partners and 12 staff accountants. The partners each work 2,100 hours
Question:
a. Assume that total support cost is considered a unit-level cost based on number of work hours. What is the support rate per labor hour?
b. If an audit engagement requires 60 partner hours and 220 staff accountant hours, how much professional support cost would be charged to the engagement using the rate determined in (a)?
c. Assume that support costs are considered batch-level costs based on number of work hours. What are the support rates per labor hour? (Round to the nearest cent.)
d. If an audit engagement requires 60 partner hours and 220 staff accountant hours, how much support cost would be charged to the engagement using the rates determined in (c)?
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Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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