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. If overhead is applied on the Monoco engagement based on a single-cost driver basis, what is the total cost of the engagement?
A)$101,000
B)$96,200
C)$43,200
D)$48,000
E)$85,000

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. If overhead is applied on the Monoco engagement based on a single-cost driver basis, what is the total cost of the engagement?
A)$101,000 
B)$96,200 
C)$43,200 
D)$48,000 
E)$85,000

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. If overhead is applied on the Monoco engagement based on a single-cost driver basis, what is the total cost of the engagement?
A)$101,000 
B)$96,200 
C)$43,200 
D)$48,000 
E)$85,000

Use the Following Labor Budget Data for Roy & Miller