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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Need help
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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education