An Accounting Firm Is Setting the Audit Fee for a Proposed

Multiple Choice

An accounting firm is setting the audit fee for a proposed engagement.The budgeted direct professional labor hours are 100 hours at a rate of $100 per hour.Indirect costs are budgeted at 200% of the direct professional labor cost.Travel costs are budgeted at $20,000.If the markup is 100% of total budgeted costs,what is the audit fee?

A) $30,000
B) $50,000
C) $100,000
D) $640,000