4-34	JOB COSTING, LAW FIRM.
	Keating & Partners is a law firm specializing in labour relations and employee-related work. It employs 25 professionals (5 partners and 20 managers) who work directly with its clients. The average budgeted total compensation per professional for 2019 is $104,000. Each professional is budgeted to have 1,600 billable hours to clients in 2019. Keating is a highly respected firm, and all professionals work for clients to their maximum 1,600 billable hours available. All professional labour costs are included in a single direct cost category and are traced to jobs on a per-hour basis. All costs of Keating & Partners other than professional labour costs are included in a single indirect cost pool (legal support) and are allocated to jobs using professional labour-hours as the allocation base. The budgeted level of indirect costs in 2019 is $2.2 million.
	Required
1	Compute the 2019 budgeted professional labour-hour direct cost rate.
2	Compute the 2019 budgeted indirect cost rate per hour of professional labour.
3	Keating & Partners is considering bidding on two jobs: a. Litigation work for Richardson Inc. that requires 100 budgeted hours of professional labour. b. Labour contract work for Punch Inc. that requires 150 budgeted hours of professional labour. Prepare a cost estimate for each job.