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A company employs 5 attorneys and 6 para legals
Budgeted Salaries are $75,000 per attorney and $20,000 per paralegal.
Indirect costs were Budgeted at $125,000 but actually amounted to $150,000.
Actual salaries are $80,000 per attorney and $22,500 per paralegal.Direct and indirect costs are applied on a professional labour-hour basis which includes both attorney and paralegals hours. Total budgeted labour hours were 25,000 however actual labour hours were 30,000.
1) What is the actual direct cost rate and the actual indirect cost rate respectively, if a
client used 5,000 professional labor hours?2) What are the budgeted direct cost rate and the budgeted indirect cost rate respectively
if a client used 4000 professional labour rate hours?3) How much should the client be billed in a normal costing system when 1000 professional labour hours were used?
4) How much should the client be billed in a budgeting costing system if 500 professional labour hours were used?
5) How much should the client be billed in an actual costing system if 200 professional labour hours were used?
This is from some source questions online via PDF drive.
Given that you have asked this in the general MA forum and not in the Ask the Tutor MA forum, then you are obviously not expecting me to answer.
Maybe other students will answer you, but why on earth are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers – they are full of exam standard questions together with answers and explanations.
Maybe you have been set this question as a test, in which case I would be surprised if you are expecting others to do your test for you.
I would suggest that you watch my free lectures. They are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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