ABC consulting firm has been victimized by a hacker. The company\'s website had
ID: 2475802 • Letter: A
Question
ABC consulting firm has been victimized by a hacker. The company's website had to be shut down for two hours on a Saturday. The systems administrator was in the company's office with two IT employees over the weekend. They worked a 12-hour shift to restore the system. The admin. Is salaried, and the two employees are hourly workers. The administrator's annual salary is $90,000.00, and the IT employees' hourly rate is $30 with time and a half for overtime hours plus benefits of approximately 15 percent. Company overhead is charged to client jobs at 120 percent of direct labor dollars (minus employee benefits). You are the forensic accountant brought into ABC to calculate the losses. How much salary expense and overhead should be considered to be part of the loss charged to the attack? a. $2250 b. $3000 c. $2155 d. $2106 (Points : 5) a b c d
Explanation / Answer
Per Day salary of System Administrator = 90,000 / 365 = $247
Normal Payment of IT Employees for 8 hours time = $30
For 8 Hours = 30 x 8 = $240
Add : For extra 4 hours = 4 x 30 x 1.5 = $180
Per employee payment = $240 + $180 = $420
For 2 Employees = 420 x 2 = $840
Add: 15% Employee Benefits = (247 + 840) x 15% = $163
Total Salary cost = 247 + 840 + 163 = $1,250
Add: Overhead at the rate 120% of labor expenses:
Labor Expenses = 840
120% of 840 = $1,008
Total salary expenses and overhead that should be charged = 1,250 + 1,008 = $2,258
Correct answer is $2,250