Baptiste Accounting Services expects its accountants to work a total of 33,000 direct labor hours per...

 

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Baptiste Accounting Services expects its accountants to work a total of 33,000 direct labor hours per year. The company's estimated total indirect costs are $152,000. The direct labor rate is $100 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Baptiste performs a job requiring 55 hours of direct labor and bills the client using a standard markup of 40% of costs, calculate the amount of the client's bill. (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) Baptiste Accounting Services expects its accountants to work a total of 33,000 direct labor hours per year. The company's estimated total indirect costs are $152,000. The direct labor rate is $100 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Baptiste performs a job requiring 55 hours of direct labor and bills the client using a standard markup of 40% of costs, calculate the amount of the client's bill. (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

Answer rating: 100% (QA)

ANSWER Step 1 Calculate the total direct labor cost Direct labor hours Di... View the full answer