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Consider the following budgeted data for a client job of Bob Crachit s accounting firm. The client wants a fixed-price quotation. Direct professional labor 20,000 Direct support labor 10,000 Fringe benefits for direct labor 13,000 Photocopying 2,000 Telephone calls 2,000 Computer equipment 6,000 Overhead is allocated at the rate of 100% of direct labor cost. A. Prepare a schedule of the budgeted total costs for the client. Show subtotals for total direct labor costs and total costs as a basis for markup. B. Assume that the partner s policy is to quote a fixed fee at 10% above the total costs. What fee would be quoted?

Consider the following budgeted data for a client job of Bob Crachit s accounting firm. The client wants a fixed-price quotation. Direct professional labor 20,000 Direct support labor 10,000 Fringe benefits for direct labor 13,000 Photocopying 2,000 Telephone calls 2,000 Computer equipment 6,000 Overhead is allocated at the rate of 100% of direct labor cost. A. Prepare a schedule of the budgeted total costs for the client. Show subtotals for total direct labor costs and total costs as a basis for markup. B. Assume that the partner s policy is to quote a fixed fee at 10% above the total costs. What fee would be quoted?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Consider the following budgeted data for a client job of Bob Crachit s accounting firm. The client wants a fixed-price quotation. Direct professional labor 20,000 Direct support labor 10,000 Fringe benefits for direct labor 13,000 Photocopying 2,000 Telephone calls 2,000 Computer equipment 6,000 Overhead is allocated at the rate of 100% of direct labor cost. A. Prepare a schedule of the budgeted total costs for the client. Show subtotals for total direct labor costs and total costs as a basis for markup. B. Assume that the partner s policy is to quote a fixed fee at 10% above the total costs. What fee would be quoted?
Transcribed Image Text:Consider the following budgeted data for a client job of Bob Crachit s accounting firm. The client wants a fixed-price quotation. Direct professional labor 20,000 Direct support labor 10,000 Fringe benefits for direct labor 13,000 Photocopying 2,000 Telephone calls 2,000 Computer equipment 6,000 Overhead is allocated at the rate of 100% of direct labor cost. A. Prepare a schedule of the budgeted total costs for the client. Show subtotals for total direct labor costs and total costs as a basis for markup. B. Assume that the partner s policy is to quote a fixed fee at 10% above the total costs. What fee would be quoted?
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