A consultant has an agreement with Worldwide Foods that all her costs while working on its project

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A consultant has an agreement with Worldwide Foods that all her costs while working on its project would be reimbursed in addition to her being paid £100 per hour. Other clients pay her a fee of £150 per hour with no cost reimbursement. During the year, she expects to have overhead costs of £150,000 and expects to work 2,000 hours for clients.

Of those 2,000 hours, 400 hours are expected to be on the Worldwide Foods project. The overhead costs are the only expected costs and are allocated based on hours working for clients.

What does the consultant expect to earn during the year?

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Management Accounting In A Dynamic Environment

ISBN: 9780415839020

1st Edition

Authors: Cheryl S McWatters, Jerold L Zimmerman

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