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Mira Financial Advisors provides accounting and finance assistance to customers in the retail business. Mira has four professionals on? staff, plus an office with six clerical staff. Total? compensation, including? benefits, for the professional staff runs about $756,000 per? year, and it normally has about 8,100 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 $570,000.
Problem 1: Mira allocates office and administrative costs to clients? monthly, using a predetermined overhead allocation rate based on billable hours. During? July, Mira's professionals spent 36 hours on their? client, Riley Sales. Mira adds a 25?% markup on its costs to calculate the amount billed to the customer. How much should the company charge Riley Sales for the month of? July? (Round your intermediate calculations to the nearest? cent, and your final answer to the nearest?dollar.)
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