The partners of Trebbi and Schertzer, a security services firm, decide to implement an activity-based costing system.
Question:
$80,000; and research support, $300,000. It is determined that the best cost driver for fringe benefits is professional labor dollars; technology support is partner labor hours; and research support is professional labor hours. The two partners have budgeted salaries and billable hours of $150,000 and 1,500 billable hours each for the coming year. There are also eight investigators earning $50,000 and having 1,500 billable hours each.
Required:
Compute the budgeted overhead rate for each of the three cost pools.
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Related Book For
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell
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