Use the following labor budget data for Roy & Miller Accounting, LLP. Partner Salaries $ 400,000 Partner Benefits (40%) 160,000 Total Partner Compensation $ 560,000 Staff Accountant Salaries $ 600,000 Staff Benefits (40%) 240,000 Total Staff Compensation $ 840,000 The budgeted overhead cost for the year is $1,260,000. The company has estimated that one-third of the budgeted overhead cost is incurred to support the firm's two partners, and two-thirds goes to support the staff accountants. The current audit bid for Monoco Industries requires $18,000 in direct partner professional labor, $30,000 in direct staff accountant professional labor, and $5,000 indirect material. If overhead is applied on the Monoco engagement based on a single-cost driver basis, what is the total cost of the engagement?

Answer rating: 100% (QA)

Ans 96200 First we will compute the singlecost driver for the overheads At present the total compens... View the full answer