12. product costing Ralph’s Service provides consulting expertise to not-for-profit entities.

Several partners lead various consulting teams that provide the services on a contract basis. Each team consists of the aforementioned partner and a group of professional people drawn from Ralph’s stable of professional labor. Ralph employs what we will learn to call a job order costing system to document the cost of each consulting engagement. Each engagement, or client, is costed out based on (i)

actual partner time, which averages 120 per hour; (ii) specific identifiable costs (such as for specialized materials); and (iii) allocated professional staff, indirect labor, and miscellaneous supplies. During a recent month the following events occurred:

client A client B client C partner time (hours) 100 450 250 professional staff time (hours) 1,200 900 800 specific costs (dollars) 18,000 12,000 145,000 In addition, the following support costs were incurred, each catalogued in a separate cost pool:

professional staff labor cost 55,000 indirect labor cost 45,000 cost of misc. supplies 24,000 Determine the (unit) cost of each of the engagements.