5th Edition

ISBN: 9780134067254

Author: Braun

Publisher: PEARSON

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Textbook Question

Chapter 3, Problem 3.5SE

Compute a professional billing rate (Learning Objective 7)

Nicole Grandstone is a new staff accountant at James & Associates. She is paid a salary of $67,600 per year and is expected to work 2,600 hours per year on client jobs. The firm’s indirect cost allocation rate is $25 per hour. The firm would like to achieve a profit equal to 20% of cost.

1. Convert Nicole’s salary to an hourly wage rate for billing purposes.
2. Calculate the professional billing rate James & Associates would use for billing out Nicole’s services.

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Chapter 3 Solutions

Managerial Accounting (5th Edition)

Ch. 3 - (Learning Objective 1) For which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 3) The amount of manufacturing...Ch. 3 - (Learning Objective 4) Which of the following is...Ch. 3 - (Learning Objective 5) Which of the following is...Ch. 3 - (Learning Objective 5) Assuming the amount of...Ch. 3 - Prob. 8QC Ch. 3 - Prob. 9QC Ch. 3 - Prob. 10QC

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