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

A) 50%
B) 75%
C) 66.7%
D) 100%
E) 150%