The law firm of Menard and Baker specializes in civil litigation. The overhead costs of operObjs. 2, 5 ating the office are charged to clients as an administrative surcharge. The surcharge is based on attorneys' hours. The managing partner of the firm, Cynthia Menard, has noticed that clients who require extensive legal service often complain about the administrative surcharge. After reviewing costs and time sheets, Cynthia has determined that administrative costs usually are not a function of attorneys' hours, but of the time incurred by administrative personnel. How does volume affect the allocation of administrative costs? What changes should the firm consider? Why?