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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

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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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:

  1. Calculate a charge rate for each of the activity costs
  2. Calculate how much Singh Enterprises should be billed
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