The consulting firm Sheridan Financial employs 48 full-time staff. The estimated compensation per employee is $107,300 for 1,850 hours. It charges all direct labour costs to clients. It includes any other costs in a single indirect cost pool and allocates them based on labour hours. Actual indirect costs were $854,200. Estimated indirect costs for the coming year are $1,510,000. The firm expects to have 78 clients in the coming year. (a) Your answer is incorrect. Determine the overhead rate per direct labour hour. (Round anwer to 2 decimal places, e.g. 2.25.)

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The consulting firm Sheridan Financial employs 48 full-time staff. The estimated compensation per employee is $107,300 for 1,850
hours. It charges all direct labour costs to clients. It includes any other costs in a single indirect cost pool and allocates them based on
labour hours. Actual indirect costs were $854,200. Estimated indirect costs for the coming year are $1,510,000. The firm expects to
have 78 clients in the coming year.
(a)
Your answer is incorrect.
Determine the overhead rate per direct labour hour. (Round anwer to 2 decimal places, e.g. 2.25.)
Overhead rate per direct labour hour $
Transcribed Image Text:The consulting firm Sheridan Financial employs 48 full-time staff. The estimated compensation per employee is $107,300 for 1,850 hours. It charges all direct labour costs to clients. It includes any other costs in a single indirect cost pool and allocates them based on labour hours. Actual indirect costs were $854,200. Estimated indirect costs for the coming year are $1,510,000. The firm expects to have 78 clients in the coming year. (a) Your answer is incorrect. Determine the overhead rate per direct labour hour. (Round anwer to 2 decimal places, e.g. 2.25.) Overhead rate per direct labour hour $
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