Grant & McKenzie is a firm of financial advisors that needs to calculate an hourly rate to
Question:
Grant & McKenzie is a firm of financial advisors that needs to calculate an hourly rate to charge customers for its services.
The average salary cost for its advisers is $50,000. The employer's share of CPP and EI is paid to the government as 4.95% and 2.52%, respectively. Each adviser has a four-week annual holiday and there are 10 days per year when the firm closes for holidays. Each adviser is expected to do 25 chargeable hours of work per week for clients; the remainder of the 40-hour week is spent on administrative work.
What hourly rate (to the nearest hour) would cover the cost of each financial adviser?
Select one:
a. $43.78
b. $46.72
c. $41.33
d. $29.20
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta