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Question - A company employs two professional appraisers, each having a different specialty. Scott specializes in commercial appraisals and Burt specializes in in residential appraisals/ The company expects total overhead costs of $407,500 during the year. The salaries and billable hours of the two appraisers are expected to be as follows:
Scott: Salary- $100,0000 and Billable Hours- 2,000
Burt: Salary- $63,000 and Billable Hours- 1,800
The accountant for the company is computing the total amount, per hour, that should be billed to each client. This billing rate must cover both the company's overhead costs and the salaries to be paid to Scott and Burt. In addition, the overhead cost allocation must reflect the fact that Scott and Burt are paid at different hourly rates. What is the total billing rate, per hour, for both Scott and Burt?
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