$PNQVUJOH EJSFDUDPTU SBUFT$$ DPOTVMUJOH mSN $(1520$ minutes$)$

Zimmermann GmbH is an international consulting firm. Its annual budget includes the following for each category of professional labour:

Category

Average

salary

Average

fringe

benefits

Billable time

for clients

$($hours$)$

Vacation and

sick leave

$($hours$)$

Professional

development

$($hours$)$

Unbilled time

due to lack

of demand

Director $1400006000016001602400$

Partner $1050004500016001602400$

Associate $600002000016001602400$

Assistant $380001200016001602400$

Required

$1$ Calculate the budgeted direct$-$cost rate for professional labour $($salary and fringe benefits$)$ per

hour for $($a$)$ directors, $($b$)$ partners, $($c$)$ associates, and $($d$)$ assistants. Use budgeted billable

time for clients as the denominator in these computations.

$2$ Repeat requirement $1.$ Use the sum of budgeted billable time, vacation and sick leave time and

professional development time as the denominator in these calculations.

$3$ Why are the rates diferent between requirements $1$ and $2?$ How might these diferences afect

job costing by Zimmermann GmbH$?$