A small management consultancy has prepared the following information: Overhead absorption rate per consulting hour Salary cost per consulting hour (senior) Salary cost per consulting hour (junior) £12.50 £20.00 £15.00 The firm adds 40% to total cost to arrive at a selling price. Assignment number 652 took 86 hours of a senior consultant's time and 220 hours of a junior consultant's time. 2 Question 44 What price should be charged for assignment 652? (A) £5,355 (B) £7,028 (C) £8,845 (D) £12,383

A small management consultancy has prepared the following information: Overhead absorption rate per consulting hour Salary cost per consulting hour (senior) Salary cost per consulting hour (junior) £12.50 £20.00 £15.00 The firm adds 40% to total cost to arrive at a selling price. Assignment number 652 took 86 hours of a senior consultant's time and 220 hours of a junior consultant's time. 2 Question 44 What price should be charged for assignment 652? (A) £5,355 (B) £7,028 (C) £8,845 (D) £12,383

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 1MAD: Advent Software uses standards to manage the cost of the programming staff. There are two programmer...

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