4-38 Service industry, job costing, two direct- and two indirect-cost categories, law firm (continua- tion of 4-37). Kidman has just completed a review of its job-costing system. This review included a detailed analysis of how past jobs used the firm's resources and interviews with personnel about what factors drive the level of indirect costs. Management concluded that a system with two direct-cost categories (profes- sional partner labor and professional associate labor) and two indirect-cost categories (general support and secretarial support) would yield more accurate job costs. Budgeted information for 2017 related to the two direct-cost categories is as follows Professional Associate Labor 25 1,500 per year $75,000 Professional Partner Labor Number of professionals Hours of billable time per professional Total compensation (average per professional) ,500 per year $210,000 Budgeted information for 2017 relating to the two indirect-cost categories is as follows: Total costs Cost-allocation base General Support $2,025,000 Professional labor-hours Secretarial Support $450,000 Partner labor-hours 1. Compute the 2017 budgeted direct-cost rates for (a) professional partners and (b) professional associates. ompute the 2017 budgeted indirect-cost rates for (a) general support and (b) secretarial support. Compute the budgeted costs for the Richardson and Punch jobs, given the following information: 3. Richardson, Inc. 48 hours 72 hours Punch, Inc. 32 hours 128 hours Professional partners Professional associates omment on the results in requirement 3. Why are the job costs different from those computed in Problem 4-37? uld you recommend Kidman & Associates use the job-costing system in Problem 4-37 or the job- costing system in this problem? Explain