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 overhead rate for partners, if separate rates are used for partners and staff accountants?

A) 90%
B) 75%
C) 60%
D) 225%
E) 50%