Homework Help is Here – Start Your Trial Now!
Business
Accounting
Summit Financial Advisors provides accounting and finance assistance to customers in the retail business. Summit has four professionals on staff and an office with six clerical staff. Total compensation, including benefits, for the professional staff run about $765,000 per year, and it normally has about 8,500 billable hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are $578,000. Summit allocates office and administrative costs to clients monthly, using a predetermined overhead allocation rate based on billable hours. During July, Summit's professionals spent 46 hours on their client. What is the total amount of cost that Summit will record for the client for the month? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) OA. $1,343,000 B. $3,128 OC. $4,140 OD. $7,268

Summit Financial Advisors provides accounting and finance assistance to customers in the retail business. Summit has four professionals on staff and an office with six clerical staff. Total compensation, including benefits, for the professional staff run about $765,000 per year, and it normally has about 8,500 billable hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are $578,000. Summit allocates office and administrative costs to clients monthly, using a predetermined overhead allocation rate based on billable hours. During July, Summit's professionals spent 46 hours on their client. What is the total amount of cost that Summit will record for the client for the month? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) OA. $1,343,000 B. $3,128 OC. $4,140 OD. $7,268

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

Please do not give solution in image format thanku 

Summit Financial Advisors provides accounting and finance assistance to customers in the retail business. Summit has four professionals on staff and an office with six clerical staff. Total compensation, including benefits, for the professional staff run about $765,000 per year, and it normally has about 8,500 billable hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are $578,000. Summit allocates office and administrative costs to clients monthly, using a predetermined overhead allocation rate based on billable hours. During July, Summit's professionals spent 46 hours on their client. What is the total amount of cost that Summit will record for the client for the month? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) OA. $1,343,000 B. $3,128 OC. $4,140 OD. $7,268
Transcribed Image Text:Summit Financial Advisors provides accounting and finance assistance to customers in the retail business. Summit has four professionals on staff and an office with six clerical staff. Total compensation, including benefits, for the professional staff run about $765,000 per year, and it normally has about 8,500 billable hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are $578,000. Summit allocates office and administrative costs to clients monthly, using a predetermined overhead allocation rate based on billable hours. During July, Summit's professionals spent 46 hours on their client. What is the total amount of cost that Summit will record for the client for the month? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) OA. $1,343,000 B. $3,128 OC. $4,140 OD. $7,268
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Decision to Sell before or after additional processing
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.
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
SEE MORE TEXTBOOKS