chell, Pickings, and Matthews is a law firm that focuses on environmental law. It employs ten lawyers
Question:
chell, Pickings, and Matthews is a law firm that focuses on environmental law. It employs ten lawyers and three partners. During the last year, each lawyer and partner charged 1,500 billable hours to clients. Lawyer salaries for the current year are \($1,800,000\) in total and partner salaries averaged \($375,000\) per partner. Other costs including administrative support, computer services, and legal assistance are charged at a rate of 50% of direct wages. For a recent client, the company billed 50 hours of lawyer time and 10 hours of partner time. What is the cost of the client? If the firm charges a rate of 200% of cost to its clients, what will be the fee charged to the client?
Step by Step Answer:
Accounting For Managers Interpreting Accounting Information For Decision Making
ISBN: 9781118037966
1st Canadian Edition
Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann