[mslaurayee]

A transportation company provides bussing, limo, and taxi services. The company charges: $350 per day for bussing services, $2.00 per kilometer for taxi services, and $3.50 per kilometer for limo services. Two individual clients, the school board and the city government offices use the majority of the limo service on a contract agreement. Bussing services are used exclusively by the school board, and the taxi services is used almost exclusively by the general public, although the school board uses the taxi services when individual students have to be transported on occasion. Indirect costs are accumulated on internal records at $1.50 per kilometer for limo use and $1.00 per kilometer for taxi use, and $195 per day for each of the twenty buses.

Client Limo KM Taxi KM Average Days/Bus
School board 360 90 19
City gov't 1,943 125 N.A.

The pervious controller had always estimated the indirect costs at 25%. What indirect costs were accumulated for each major client for the month under this assumption?

a) School Board $33,610.00 City Gov't $1,762.63
b) School Board $2,022.50 City Gov't $33,610.00
c) School Board $33,610.00 City Gov't $1,080.88
d) School Board $2,022.50 City Gov't $1,762.63
e) School Board $1,762.63 City Gov't $1,921.25

[TDUPASSE]

The answer is a