third of the budgeted overhead cost is incurred to support the firm’s two partners, and two-
thirds goes to support the staff accountants.
The current audit bid for Monoco Industries
requires $18,000 in direct partner professional labor, $30,000 in direct staff accountant
professional labor, $5,000 in direct material,
81. What is the total budgeted compensation for both partners and staff accountants?
None of these answers is correct.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA: FN Reporting
Difficulty: 2 Medium
Learning Objective: 03-08
Feedback A: This amount is incorrect.
Feedback B: This amount is incorrect.
Feedback C: This amount is incorrect.
Feedback D: Correct! Total budgeted compensation = Total partner Comp. + Total staff Comp.; $560,000 + $840,000 = $1,400,000
Feedback E: There is a correct answer listed.