Concord Corporation provides financial consulting and has collected the following data for the next year’s budgeted activity for a lead consultant. Consultants’ wages $85000 Fringe benefits $22500 Related overhead $17500 Supply clerk’s wages $17000 Fringe benefits $3000 Related overhead $21000 Profit margin per hour $20 Profit margin on materials 15% Total estimated consulting hours 5000 Total estimated material costs $164000 A consulting job takes 20 hours of consulting time and $180 of materials. The client’s bill would be $752. $932. $1080. $1152.
Concord Corporation provides financial consulting and has collected the following data for the next year’s budgeted activity for a lead consultant. Consultants’ wages $85000 Fringe benefits $22500 Related overhead $17500 Supply clerk’s wages $17000 Fringe benefits $3000 Related overhead $21000 Profit margin per hour $20 Profit margin on materials 15% Total estimated consulting hours 5000 Total estimated material costs $164000 A consulting job takes 20 hours of consulting time and $180 of materials. The client’s bill would be $752. $932. $1080. $1152.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Concord Corporation provides financial consulting and has collected the following data for the next year’s budgeted activity for a lead consultant.
| Consultants’ wages | $85000 |
| |
$22500 |
| Related |
$17500 |
| Supply clerk’s wages | $17000 |
| Fringe benefits | $3000 |
| Related overhead | $21000 |
| Profit margin per hour | $20 |
| Profit margin on materials | 15% |
| Total estimated consulting hours | 5000 |
| Total estimated material costs | $164000 |
A consulting job takes 20 hours of consulting time and $180 of materials. The client’s bill would be
|
|
$752. |
|
|
$932. |
|
|
$1080. |
|
|
$1152. |
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