You have just made it to Manager at a mid-sized accounting firm. You have always wanted to introduce ABC as a method for tracing internal costs. You have done research on the standards used in firms...

You have just made it to Manager at a mid-sized accounting firm. You have

       always wanted to introduce ABC as a method for tracing internal costs. You

       have done research on the standards used in firms of this size.

                                                       Position                  Billing Rate/Hr

       Currently there are  :  - Senior Partner                       $250.00

• 
  Junior Partner                        00
  

                                               Total Billing rates                   $400.00

All partners have billing rates consistent with professional practice standards

and clients are billed on the basis of partners’ billing rates, plus  20% of partners’ billing rates as an  overhead charge to cover all indirect costs.

Two clients were billed for work performed during the month just ended as follows:

                            Senior Partner      Junior Partner     Totals

Delta Corp.                10 Hours              15 Hours          25Hours

Zeno Ltd                    15 Hours              10 Hours          25Hours

    Total CPA Hrs      25 Hours              25 Hours          50Hours

Required: Please provide the details of the invoice that would be prepared on the above basis for billing the individual clients.

Invoice:                      Time Charges                                    Overhead      Total Charges

                                    Senior Partner    Junior Partner

Client :   Delta Corp