. L & L, CPAs, employs two full-time professional CPAs and five other accountants. Budgeted direct salary costs include \$150,000 for each CPA and \$40,000 per other accountant. For 2001 year, indirect costs were budgeted at \$200,000, but actually amounted to \$225,000. Actual salaries were \$155,000 for each CPA and \$45,000 for each accountant. Direct and indirect costs are applied on a labor-hour basis. Total budgeted labor-hours were 5,000. If a client used 500 labor-hours, what are the budgeted direct-cost rate and the budgeted indirect cost rate, respectively?

1. \$100; \$45

2. \$100; \$40

3. \$90; \$40

4. \$101; \$40

5. 107; \$45

. L & L, CPAs, employs two full-time professional CPAs and five other accountants. Budgeted direct salary costs include \$150,000 for each CPA and \$40,000 per other accountant. For 2001 year, indirect costs were budgeted at \$200,000, but actually amounted to \$225,000. Actual salaries were \$155,000 for each CPA and \$45,000 for each accountant. Direct and indirect costs are applied on a labor-hour basis. Total budgeted labor-hours were 5,000. If a client used 500 labor-hours, what are the budgeted direct-cost rate and the budgeted indirect cost rate, respectively?

1. \$100; \$45

2. \$100; \$40

3. \$90; \$40

4. \$101; \$40

5. 107; \$45