Use the following labor budget data for Roy & Miller Accounting, LLP. ...
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Accounting
Use the following labor budget data for Roy & Miller Accounting, LLP.
Partner Salaries
$
800,000
Partner Benefits (40%)
320,000
Total Partner Compensation
$
1,120,000
Staff Accountant Salaries
$
1,000,000
Staff Benefits (40%)
400,000
Total Staff Compensation
$
1,400,000
The budgeted overhead cost for the year is $2,318,400. The company has estimated that one-third of the budgeted over-head cost is incurred to support the firms two partners, and two-thirds goes to support the staff accountants. The current audit bid for Monoco Industries requires $24,000 in direct partner professional labor, $35,000 in direct staff accountant professional labor, $4,000 in direct material. What is the overhead rate for staff accountants, if separate rates are used for partners and staff accountants?
Multiple Choice
55%
69%
66.2%
110.4%
138%
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