Use the Following Labor Budget Data for Roy & Miller

Multiple Choice

Use the following labor budget data for Roy & Miller Accounting, LLP. The budgeted overhead cost for the year is $1,260,000.The company has estimated that one-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. What is the total budgeted compensation for both partners and staff accountants?

A) $1,000,000
B) $600,000
C) $1,160,000
D) $1,400,000
E) None of these answers is correct.