JKL Financial Services Ltd has provided the following budget information for the coming financial year: Senior consultant salaries $170,000 - 2,300 hours Graduate salaries $60,000 - 1,850 hours Photocopying $10,000 - 80,000 sheets Travel $40,000 - 55,000 km Systems - $50,000 - 100,000 transactions Clients are billed at cost plus a 40% mark-up The following costs were incurred in servicing Singh Enterprises Senior consultant salaries 40 hours Graduate salaries 80 hours Photocopying 20 sheets Travel 40 km Systems 1500 transactions Required: Calculate a charge rate for each of the activity costs Calculate how much Singh Enterprises should be billed
JKL Financial Services Ltd has provided the following budget information for the coming financial year: Senior consultant salaries $170,000 - 2,300 hours Graduate salaries $60,000 - 1,850 hours Photocopying $10,000 - 80,000 sheets Travel $40,000 - 55,000 km Systems - $50,000 - 100,000 transactions Clients are billed at cost plus a 40% mark-up The following costs were incurred in servicing Singh Enterprises Senior consultant salaries 40 hours Graduate salaries 80 hours Photocopying 20 sheets Travel 40 km Systems 1500 transactions Required: Calculate a charge rate for each of the activity costs Calculate how much Singh Enterprises should be billed
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
JKL Financial Services Ltd has provided the following budget information for the coming financial year:
Senior consultant salaries $170,000 - 2,300 hours
Graduate salaries $60,000 - 1,850 hours
Photocopying $10,000 - 80,000 sheets
Travel $40,000 - 55,000 km
Systems - $50,000 - 100,000 transactions
Clients are billed at cost plus a 40% mark-up
The following costs were incurred in servicing Singh Enterprises
Senior consultant salaries 40 hours
Graduate salaries 80 hours
Photocopying 20 sheets
Travel 40 km
Systems 1500 transactions
Required:
- Calculate a charge rate for each of the activity costs
- Calculate how much Singh Enterprises should be billed
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