Question

Barbara Fabry, CPA, pays her new staff accountant, Diane , a salary equivalent to $30 per hour while Barbara receives a salary equivalent to $38 per hour. The firm's predetermined indirect cost allocation rate for the year is $18 per hour. Fabry bills for the firm's services at 35 % over cost. Assume Barbara works 3 hours and Diane works 17 hours preparing a tax return for Mikayla McBride.

1. What is the total cost of preparing McBride 's tax return?

2. How much will Barbara bill McBride for the tax work?

Answer 1