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Retirement Planning Is a Consulting Firm with Clients Across the Nation.Within

Question 94

Multiple Choice

Retirement Planning is a consulting firm with clients across the nation.Within the company is a travel group that arranges flights and hotel accommodations for its 250 consultants.The overhead cost of operating the travel group amounts to approximately $204,000 annually.Recently the company conducted an ABM study that has determined the following:
-Each consultant completed approximately 15 business trips per year.
-On average, 17 trips are scheduled, with 2 trips cancelled and rescheduled.
-Benchmarking with a Retirement Planning's client indicates that the client incurs a cost of $60 per scheduled trip to book travel.
How much overhead cost should be allocated to each completed trip?


A) $54.40
B) $48.00
C) $60.00
D) None of these answer choices are correct.

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