Remmele and Little CPA's has decided to bid on the audit of Tanner, Inc. After learning about the new client, they estimated the following:All staff managers and partners are paid on average 30% of the desired client billing rate. Fringe benefits average 30% of pay rate.Other out of pocket costs include supplies, travel,clerical and are fairly accurate.
- Staff accountant hours 1500
- Manager hours 200
- Partner hours 100
- Out of pocket costs(Estimate) $10,000
A. If the firm normally marked up nonlabor costs by 20% to arrive at the client fee what should the bid price be?