Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. They have 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576 000 per year, and they normally have about 8 000 available hours per year. Professional staff keep detailed time sheets distributed by client number. Office and administrative costs total $754 000 a year. What is the cost allocation rate that Bilkins will use for office and administrative costs?

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The Answer of Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. They have 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576 000 per year, and they normally have about 8 000 available hours per year. Professional staff keep detailed time sheets distributed by client number. Office and administrative costs total $754 000 a year. What is the cost allocation rate that Bilkins will use for office and administrative costs?

Bilkins Financial Advisors Provides Accounting and Finance Assistance to Customers