Terri Martin,CPA provides bookkeeping and tax services to her clients.She charges a fee of $60 per hour for bookkeeping and $90 per hour for tax services.Martin estimates the following costs for the upcoming year: Operating profits declined last year and Ms.Martin has decided to use activity-based costing (ABC)procedures to evaluate her hourly fees.She gathered the following information from last year's records: Martin wants her hourly fees for the tax services to be 160% of their activity-based costs.What is the fee per hour for tax services in the upcoming year?

Question

Terri Martin,CPA provides bookkeeping and tax services to her clients.She charges a fee of $60 per hour for bookkeeping and $90 per hour for tax services.Martin estimates the following costs for the upcoming year:  Operating profits declined last year and Ms.Martin has decided to use activity-based costing (ABC)procedures to evaluate her hourly fees.She gathered the following information from last year's records:  Martin wants her hourly fees for the tax services to be 160% of their activity-based costs.What is the fee per hour for tax services in the upcoming year?

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The Answer of Terri Martin,CPA provides bookkeeping and tax services to her clients.She charges a fee of $60 per hour for bookkeeping and $90 per hour for tax services.Martin estimates the following costs for the upcoming year:  Operating profits declined last year and Ms.Martin has decided to use activity-based costing (ABC)procedures to evaluate her hourly fees.She gathered the following information from last year's records:  Martin wants her hourly fees for the tax services to be 160% of their activity-based costs.What is the fee per hour for tax services in the upcoming year?

Terri Martin,CPA Provides Bookkeeping and Tax Services to Her Clients