2 Kahn & Associates is a low firm sp i n d l ated work employs 25 professionals partners and 18 associates) who work direct with clients Them e budete total compensation per professional or 2017 is $110.000. Each professionalisbudpated to havn 2000 hab hours to clients in 2017. All professionals work for Clients to their maximum 2.000 billable hours available. All professional labor costs are included in a single direct-cost category and are traced to jobs on a per hour basis All costs of Kahn & Associates other than professional labor costs are included in a single indirect-cost pool (legal support and are allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2017 is $2,250,000 Read the requirements! Requirement 1. Identify the components of the overview diagram of Kahn's job-costing system. E (5) H (8) (9) Requirement 2. Compute the 2017 budgeted direct-cost rate per hour of professional labor. Select the formula to compute the budgeted direct cost rate, then enter the amounts and calculate the rate Budgeted direct- (10) = cost rate per hour per hour (11) Requirement 3. Compute the 2017 budgeted indirect-cost rate per hour of professional labor. Select the formula to compute the budgeted indirect-cost rate, then enter the amounts and calculate the rate. Budgeted indirect (12) 1 (13) = cost rate per hour per hour Requirement 4. Prepare a cost estimate for the Richardson, Inc. job, which requires 110 budgeted hours of professional labor and for the Punch, Inc. job, which requires 150 budgeted hours of professional labor. Richardson Punch Direct-costs Indirect costs Total costs 1: Requirements 1. Identify the components of the overview diagram of Kahn's job-costing system. 2. Compute the 2017 budgeted direct cost rate per hour of professional labor 3. Compute the 2017 budgeted indirect-cost rate per hour of professional labor. 4. Kahn & Associates is considering bidding on two jobs: a. Litigation work for Richardson, Inc., which requires 110 budgeted hours of professional labor. b. Labor contract work for Punch, Inc., which requires 150 budgeted hours of professional labor. Prepare a cost estimate for each job. (1) O O Cost Alocation Base O Cost Object: Job for Client Direct Costs O Direct Materials Indirect Cost Pool Indirect Costs O Machine-Hours Manufacturing Overhead O Professional Labor Professional Labor-Hours (2) O O Cost allocation base Cost object job for client Direct costs O Direct materials O Indirect costs Legal support O Machine-hours O Manufacturing overhead Professional labor Professional labor-hours (3) O O Cost Allocation Base O Cost Object: Job for Client Direct Costs Direct Materials Indirect Cost Pool Indirect Costs O Legal Support Machine-Hours Manufacturing Overhead Professional Labor Professional Labor-Hours O Cost Allocation Base O Cost Object: Job for Client Direct Costs Direct Materials Machine Hours Indirect Cost Pool O Manufacturing Overhead Indirect Costs O Professional Labor Legal Support Professional Labor-Hours (5) O O Cost Allocation Base O Cost Object: Job for Client O Direct Costs O Direct Materials Indirect Cost Pool Indirect Costs Machine-Hours Manufacturing Overhead O Professional Labor-Hours (6) O Cost Allocation Base Cost Object: Job for Client Direct Costs O Direct Materials Manufacturing Overhead Indirect Cost Pool O Professional Labor-Hours Indirect Costs Machine-Hours O Cost Allocation Base Cost Object: Job for Client Direct Costs Direct Materials Manufacturing Overhead Indirect Cost Pool O Professional Labor-Hours Indirect Costs O Machine Hours (8) O O Cost Allocation Base O Cost Object: Job for Client O Direct Costs O Direct Materials Machine-Hours O Indirect Cost Pool O Manufacturing Overhead Indirect Costs Professional Labor O Legal Support Professional Labor-Hours (9) O O Cost Allocation Base O Cost Object: Job for Client Direct Costs Direct Materials O Machine-Hours O Indirect Cost Pool O Manufacturing Overhead Indirect Costs O Professional Labor O Legal Support O Professional Labor-Hours O Budgeted total direct labor-hours Number of professionals (10) O O Budgeted compensation per professional O Budgeted direct labor-hours per professional Budgeted indirect costs O Budgeted total direct labor-hours Number of professionals (11) O O Budgeted compensation per professional O Budgeted direct labor-hours per professional O Budgeted indirect costs (12) O. O Budgeted compensation per professional O Budgeted direct labor-hours per professional O Budgeted indirect costs O Budgeted total direct labor-hours Number of professionals (13) O O Budgeted compensation per professional O Budgeted direct labor-hours per professional O Budgeted indirect costs O Budgeted total direct labor-hours Number of professionals