Reference no: EM132817176

Problem - An accounting firm uses billable hours as the cost driver for their office-wide overhead rate and expect to incur the following costs for the upcoming year:

Direct labour $462,000

Office Overhead Expenses $245,000

Admin. Staff Overhead $355,000

Other budgeted data for the accounting firm for the coming year includes:

Budgeted Billable hours 2000

Number of Clients Billed 23

At the end of the year the firm has actually billed 2067 hours to clients and actual overhead was as budgeted.

Using the office-wide overhead application rate, during the year how much Overhead was billed to a client for each billable hour recorded on their account?