Throughout the country. The firm’s accountant prepared the following budget for the upcoming year:
Professional staff salaries
Administrative support staff
Other operating costs
Eighty percent of professional staff salaries are directly traceable to client projects, a figure that falls to 60%
For the administrative support staff and other operating costs. Traceable costs are charged directly to client projects; nontraceable costs, on the other hand, are treated as firm overhead and charged to projects by using a predetermined overhead application rate.
Wagner had one project in process at year-end: an arena that was being designed for charlotte county. Costs directly chargeable to this project were: