Reference no: EM132557048
Question - Use the following labor budget data for Roy & Miller Accounting, LLP.
Partner Salaries $800,000
Partner Benefits (30%) 240,000
Total Partner Compensation $1,040,000
Staff Accountant Salaries $1,000,000
Staff Benefits (30%) 300,000
Total Staff Compensation $1,300,000
The budgeted overhead cost for the year is $2,246,400. The company has estimated that one-third of the budgeted overhead cost is incurred to support the firm's two partners, and two-thirds goes to support the staff accountants. The current audit bid for Monoco Industries requires $17,000 in direct partner professional labor, $30,000 in direct staff accountant professional labor, $5,400 in direct material.
Required - What is the overhead rate based on a single cost driver (rounded to the nearest percentage)?
a. 96%
b. 95%
c. 225%
d. 64%
e. 77%