Lisa Claussen, CPA, pays her new staff accountant, Gina, a salary equivalent to $27 per hour while Lisa receives asalary equivalent to $39 per hour. The firm's predetermined indirect cost allocation rate for the year is $16 per hour.Claussen bills for the firm's services at 25% over cost. Assume Lisa works 1 hours and Gina works 16 hourspreparing a tax return for Mikayla Jones.1. What is the total cost of preparing Jones's tax return?2. How much will Lisa bill Jones for the tax work?1. What is the total cost of preparing Jones's tax return?Enter the direct and indirect costs for preparing Jones's tax return.Direct Cost: Lisa's timeDirect Cost: Gina's timeTotal Direct Cost:Indirect Cost:Total cost of preparing tax returnhrs.hrs.hrs.

The total cost of preparing the tax return is the direct cost and indirect cost . Direct cost here…

Ils for the firm's services at 25% over cost. Assume Lisa tax return for Mikayla Jones. he total cost of preparing Jones's tax return? ch will Lisa bill Jones for the tax work? the total cost of preparing Jones's tax return?

Ils for the firm's services at 25% over cost. Assume Lisa tax return for Mikayla Jones. he total cost of preparing Jones's tax return? ch will Lisa bill Jones for the tax work? the total cost of preparing Jones's tax return?

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 1E

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Lisa Claussen, CPA, pays her new staff accountant, Gina, a salary equivalent to $27 per hour while Lisa receives a
salary equivalent to $39 per hour. The firm's predetermined indirect cost allocation rate for the year is $16 per hour.
Claussen bills for the firm's services at 25% over cost. Assume Lisa works 1 hours and Gina works 16 hours
preparing a tax return for Mikayla Jones.
1. What is the total cost of preparing Jones's tax return?
2. How much will Lisa bill Jones for the tax work?
1. What is the total cost of preparing Jones's tax return?
Enter the direct and indirect costs for preparing Jones's tax return.
Direct Cost: Lisa's time
Direct Cost: Gina's time
Total Direct Cost:
Indirect Cost:
Total cost of preparing tax return
hrs.
hrs.
hrs.

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