Lisa Claussen, CPA, pays her new staff accountant, Belinda, a salary equivalent

Question

Lisa Claussen, CPA, pays her new staff accountant, Belinda, a salary equivalent to $27 per hour while Lisa receives a salary equivalent to $41 per hour The firm's predetermined indirect cost allocation rate for the year is $11 per hour Claussen bills for the firm's sences at 32% over cost Assume Lisa works 6 hours and Belinda works 16 hours preparing a tax return for Melanie Clarence 1. What is the total cost of preparing Clarence's tax return? 2. How much will Lisa bill Clarence for the tax work? 1. What is the total cost of preparing Clarence's tax return? Enter the direct and indirect costs for preparing Clarence's tax return. Direct Cost. Lisa's time 6 hrs x 41 246 nghrs. x [ 27]1 432 678 Direct Cost Belinda's time Total Direct Cost hrs,x Indirect Cost Total cost of preparing tax return 2. How much will Lisa bill Clarence for the tax work? Enter the proft markup and the amount to bill Clarence. (Round your answer for profit markup to the nearest whole dollar) Total cost of preparing tax return Plus profit markup Amount to bill Clarence

Explanation / Answer

1. Computation of total cost of Preparing Tax Return Direct Cost Lisa's Time 6 Hours X $41/Hour 246 Direct Cost Belinda's Time 16 Hour X $27/Hour 432 Total Direct Cost (a) 22 Hour 678 Indirect Cost (b) 16 Hour X $11/Hour $176 Total Cost for Preparation of Return $854 2.. Computation of Liss's Bill clearance for tax work Total Cost of Preparing Tax Return $854 Markup 32% $273.28 Amoun to Bill Clearance $678

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