Christian's Consulting Service employs 10 full-time consultants and 5 assistants.The direct and indirect costs are applied on a consultant labor-hour basis that includes both the consultants and assistant hours.The following information was reported by the accountant in 2012.

Compute the actual direct-cost rate and the actual indirect-cost rate per professional labor-hour.

Question

Christian's Consulting Service employs 10 full-time consultants and 5 assistants.The direct and indirect costs are applied on a consultant labor-hour basis that includes both the consultants and assistant hours.The following information was reported by the accountant in 2012.

Compute the actual direct-cost rate and the actual indirect-cost rate per professional labor-hour.

Quizplus · Accepted Answer

D)[($150,000 × 10)+ ($55,000 × 5)/ $55,000] = $32.27 actual direct-cost rate
$250,000 / $55,000 = $4.54 actual indirect-cost rate

Christian's Consulting Service Employs 10 Full-Time Consultants and 5 Assistants