Use the following labor budget data for Roy & Miller Accounting, LLP. 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, $5,000 in direct material. What is the overhead rate for partners, if separate rates are used for partners and staff accountants?
A)90%
B)75%
C)60%
D)225%
E)50%

Question

Use the following labor budget data for Roy & Miller Accounting, LLP.  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, $5,000 in direct material. What is the overhead rate for partners, if separate rates are used for partners and staff accountants?
A)90% 
B)75% 
C)60% 
D)225% 
E)50%

Quizplus · Accepted Answer

The Answer of Use the following labor budget data for Roy & Miller Accounting, LLP.  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, $5,000 in direct material. What is the overhead rate for partners, if separate rates are used for partners and staff accountants?
A)90% 
B)75% 
C)60% 
D)225% 
E)50%

Use the Following Labor Budget Data for Roy & Miller