What would his billing rate per hour for his tax services

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Question - A company bills $70 per hour for accounting services and $140 per hour for tax preparation. Costs for the next year are as followed: Office Supplies-$7,000, Rent-$24,000, Secretary Salary-$45,000, Tax Software-$6,000, Total:$82,000. Thinking of changing his business structure after learning about activity-based costing he develops the following data:

Activity

Cost Driver

Accounting

Tax Prep

Office Supplies

Hours Billed

1,400

600

Rent

Services Offered

1

1

Secretary Salary

Number of Clients

50

200

Tax Software

Service Billed

360

240

Not wanting to change his accounting billing rate he feels like you can charge more for his tax services. Wanting to make more than $140,000 before taxes next year, what would his billing rate per hour for his tax services need to be to achieve his goal?

Reference no: EM132061547

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