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Question - Use the following labor budget data for Roy & Miller Accounting, LLP. Partner Salaries $300,000 Partner Benefits (30%) 90,000 Total Partner Compensation $390,000 Staff Accountant Salaries $500,000 Staff Benefits (30%) 150,000 Total Staff Compensation $650,000
The budgeted overhead cost for the year is $842,400. 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 $20,000 in direct partner professional labor, $35,000 in direct staff accountant professional labor, $5,700 in direct material.
If overhead is applied on the Monoco engagement based on a single-cost driver basis, what is the total cost of the engagement?
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