Consider the budget information for Bert and Ernie Design firm: Professional labor $1,000,000 Administrative labor 200,000 Lease expense 50,000 Design equipment depreciation 25,000 Samples and books 10,000 Utilities 20,000 Professional hours 100,00 . hours Number of rooms redone 2,00 . rooms Bert and Ernie decide there are two cost pools, design support, which is assigned to jobs based on the
number of rooms redone, and facilities costs, which is assigned to jobs based on the number of professional labor hours. The design support cost pool includes design equipment depreciation and samples and books. The lease expense and utilities are considered facilities costs. What is the budgeted rate per cost driver for design support?
a. $17.50
b. $35.00
c. $ 0.35
d. $ 0.70
a
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