produet eosting Ralph' s Service provides consulting expertise to not-for-profit entities. Several partners lead various consulting teams that provide the serviees on a contraet basis.

Eaeh te am consists of the aforementioned partner and a group of professional peopIe drawn from Ralph' s stabIe of professionallabor.

Ralph employs what we willleam to eall a job order eosting system to document the cost of eaeh consulting engagement. Eaeh engagement, or elient, is eosted out based on (i) aetual partner time, whieh averages $120 per hour; (ii) speeifie identifiable costs (such as for speeialized materials); and (iii) alloeated professional staff, indireet labor, and miscellaneous supplies.

During a recent month the following events oceurred:

elient A elient B client e partner time (hours) 100 450 professional staff time (hours) 1,200 900 speeifie eosts (dollars) 18,000 12,000 In addition, the following support eosts were ineuITed:

professional staff labor $55,000 indireet labor $45,000 misc. supplies $24,000 Determine the total eost of eaeh of the engagements.

AppendixLO1