Answer the Following Questions Using the Information Below:
Roiann and Dennett

Multiple Choice

Answer the following questions using the information below:
Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 2014:
$\begin{array}{lcc}&\text { Budget }&\text { Actual }\\\text { Indirect costs } & \$ 270,000 & \$ 300,000 \\\text { Annual salary of each attorney } & \$ 100,000 & \$ 110,000 \\\text { Annual salary of each paraprofessional } & \$ 29,000 & \$ 30,000 \\\text { Total professional labor-hours } & 50,000 \mathrm{dlh} & 60,000 \mathrm{dlh}\end{array}$
-How much should the client be billed in an actual costing system if 200 professional labor-hours are used?

A) $5,000
B) $6,960
C) $7,480
D) $6,400