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. If overhead is applied on the Monoco engagement based on two separate cost drivers, what is the cost of the engagement?

A) $101,000
B) $83,000
C) $43,500
D) $96,500
E) $89,000