Optimum Finance Incorporated provides budget, savings, and investment services to clients who want a stress-free financial lifestyle. The company customizes a program for each client based on their individual goals that includes budget recommendations, investment counseling, and savings techniques. The company uses a job order cost system that keeps track of the cost of the amount of time financial consultants spend with each client. • Optimum applies all indirect operating costs (e.g. rent, utilities, and management salaries) as a percentage of the consultant's labor cost. During the most recent year, the firm estimated that it would pay $600,000 to its consultants and incur indirect operating costs of $1,170,000. Actual consultant labor costs were $645,000 and actual indirect operating costs were $1,145,000 During the year, Optimum provided 44 hours of consulting services to Joan Clair for which Optimum pays an average of $26 per hour. What is the total cost of providing services to Joan? Multiple Choice O O $3.327 $3,175 $3.375 $1731

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Aa 40.

Optimum Finance Incorporated provides budget, savings, and investment services to clients who want a stress-free financial lifestyle. The company customizes a
program for each client based on their individual goals that includes budget recommendations, investment counseling, and savings techniques. The company
uses a job order cost system that keeps track of the cost of the amount of time financial consultants spend with each client.
•
Optimum applies all indirect operating costs (eg, rent, utilities, and management salaries) as a percentage of the consultant's labor cost. During the most recent.
year, the firm estimated that it would pay $600,000 to its consultants and incur indirect operating costs of $1,170,000. Actual consultant labor costs were
$645,000 and actual indirect operating costs were $1,145,000. During the year, Optimum provided 44 hours of consulting services to Joan Clair for which
Optimum pays an average of $26 per hour. What is the total cost of providing services to Joan?
Multiple Choice
O
O
$3.327
$3,175
$3.375
$1731
Transcribed Image Text:Optimum Finance Incorporated provides budget, savings, and investment services to clients who want a stress-free financial lifestyle. The company customizes a program for each client based on their individual goals that includes budget recommendations, investment counseling, and savings techniques. The company uses a job order cost system that keeps track of the cost of the amount of time financial consultants spend with each client. • Optimum applies all indirect operating costs (eg, rent, utilities, and management salaries) as a percentage of the consultant's labor cost. During the most recent. year, the firm estimated that it would pay $600,000 to its consultants and incur indirect operating costs of $1,170,000. Actual consultant labor costs were $645,000 and actual indirect operating costs were $1,145,000. During the year, Optimum provided 44 hours of consulting services to Joan Clair for which Optimum pays an average of $26 per hour. What is the total cost of providing services to Joan? Multiple Choice O O $3.327 $3,175 $3.375 $1731
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Profit markup and markdown
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education