GBC Accounting & Tax Consultants Professional Corp, provides tax and accounting professional services to small and medium
Question:
GBC Accounting & Tax Consultants Professional Corp, provides tax and accounting professional services to small and medium sized businesses. Clients are billed on the basis of the individual accountant’s hourly rate, plus 40% of the professional rate to account for support services [Tax research, Report preparation, Computer time, Billing etc]
Following is the detail for the most recent month:
Professional | Billing rate/hour | Hour per client file | Total | ||||
Lardner Inc | Warden Co | Alberta Co | Lardner Inc | Warden Co | Alberta Co | ||
D Mork | $250 | 15h | 10h | 14h | $3,750 | $2,500 | $3,500 |
L Chu | $150 | 15h | 13h | 12h | $2,250 | $1,950 | $1,800 |
O Carter | $95 | 12h | 13h | 15h | $1,140 | $1,235 | $1,425 |
Total | 42h | 36h | 41h | $7,140 | $5,685 | $6,725 | |
Professional Costs | $2,856 | $2,274 | $2,690 |
Prepare the bill for each of the clients listed above from the information provided
The firm is desirous of providing more detail to clients along with the current method of billing, and would like to determine what are appropriate cost drivers to use in determining indirect costs – cost structure
Briefly, suggest the kind of detail that should be included, and alternative allocation bases that would be useful to the clients in this situation