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Elite Stationary employs 20 full-time employees and 10 trainees. Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and trainee hours. Following is information for 2018:
Budget Actual
Indirect costs $300,000 $400,000
Annual salary of each employee $200,000 $210,000
Annual salary of each trainee $35,000 $40,000
Total professional labor-hours 20,000 dlh 40,000 dlh
Problem 1: Analyze the cost to be billed for a client in a normal costing system when 1,000 professional labor -hours are used?
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