(5) CPA Evolution - Reimaginin X Courses X Take a Test - Disha Patel X Assignment- C mathxl.com/Student/PlayerTest.aspx?testld=233373526¢erwin=yes : Welcome, Disha -... ADHE - Thank You ADHE - Scholarshi... in Linkedin Login, Si. FSA Contact Information can al of Marke... Other Bookmarks Reading List Fall 2021 Intermediate Managerial Cost Disha Patel & | 09/20/21 10:29 AM Cynthia L Johnson Quiz: Chapter 4 Quiz Question 4 This Quiz: 5 pts possible Resume later Submit Quiz Keating & Associates is a law firm specializing in labor relations and employee-related work. It employs 25 professionals (5 partners and 20 associates) who work Keating has just completed a review of its job-costing system. directly with its clients. Previously the firm accounted for all professional labor cost in a single direct-cost account and all other costs in a single indirect-cost pool. i (Click the icon to view the job-costing review information.) (Click the icon to view the cost information and rates under the previous method.) Budgeted information for 2020 related to the two direct-cost categories is as follows: (Click the icon to view the budgeted information.) Read the requirements. X Requirements Requirement 1. Compute the 2020 budgeted direct-cost rates for (a) professional partners and (b) professional associates. Begin by selecting the formula, then enter the amounts to compute both rates. (Abbreviations used: Assoc. = Associate.) 1. Compute the 2020 budgeted direct-cost rates for (a) professional partners and (b) professional associates. 2. Compute the 2020 budgeted indirect-cost rates for (a) general support and (b) secretarial support. Budgeted direct- 3. Compute the budgeted costs for the Richardson and Punch jobs, given the following information: Budgeted compensation per professional Budgeted billable hours per professional = cost rate per hour Richardson, Inc. Punch, Inc. Partner per hour Professional partners 46 hours 35 hours Assoc. per hour Professional associates 69 hours 140 hours Requirement 2. Compute the 2020 budgeted indirect-cost rates for (a) general support and (b) secretarial support. 4. Comment on the results in requirement 3. Why are the job costs different from those computed using the firm's previous method? Begin by selecting the formula, then enter the amounts to compute both rates. (Round your answers to the nearest whole dollar.) 5. Would you recommend Keating & Associates use the job-costing system in the previous method or the job-costing system in this problem? Explain. X X Data Table More Info General Secretarial Requirement 3. Compute the budgeted costs for the Richardson and Punch jobs based upon the hours ea The average budgeted total compensation per professional for 2020 is $117,000. Each professional This review included a detailed analysis of how past jobs used the firm's resources is budgeted to have 1,800 billable hours to clients in 2020. All professionals work for clients to their and interviews with personnel about what factors drive the level of indirect costs. Richardson, Inc. Punch, Inc. maximum 1,800 billable hours available. All professional labor costs are included in a single Management concluded that a system with two direct-cost categories (professional direct-cost category and are traced to jobs on a per-hour basis. All costs of Keating & Associates partner labor and professional associate labor) and two indirect-cost categories Direct-costs: other than professional labor costs are included in a single indirect-cost pool (legal support) and are (general support and secretarial support) would yield more accurate job costs. allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect Professional partners costs in 2020 is $2,385,000. Professional associates The cost estimates for the Richardson, Inc. job, which requires 115 budgeted hours of professional Direct-costs labor and for the Punch, Inc. job, which requires 175 budgeted hours of professional labor are as Print Done follows: Indirect-costs General support Richardson Punch Direct-costs 7,475 $ 11,375 Secretarial support ndirect-costs 6,095 9,275 Indirect-costs Total costs 13,570 $ 20,650 Total costs Requirement 4. Comment on the results in requirement 3. Why are the job costs different from those comp In requirement 3 the cost system is than the firm's previous method. The two jobs Print Done Next