Dale,Smith,and Associates,a CPA Firm,is Trying to Determine the Hourly Cost

Essay

Dale,Smith,and Associates,a CPA firm,is trying to determine the hourly cost of its junior accountants in the auditing department.The following data have been gathered.
$\begin{array}{lc}\text { Monthly salaries for } 4 \text { juniors @ } @ 3,000 \text { each } & \$ 12,000 \\\text { Monthly auditing department overhead costs } & \$ 83,160 \\\text { Average number of hours worked each month } & 800 \mathrm{hr}\end{array}$
Assuming 40 percent of the monthly overhead costs for the auditing department are attributable to the junior accountants,compute the hourly cost of their services.