5-32 Job costing with multiple direct-cost categories, single indirect-cost pool, law firm (continuation of 5-31). Rachel Hamilton, the managing partner of Timlin Associates, asks her assistant to collect details on those costs included in the $625,000 indirect-cost pool that can be traced to each individual job. After analysis, Timlin is able to reclassify $450,000 of the $625,000 as direct costs: Other Direct Costs Lopez Enterprises Clinical Inc. Research support labor $41,000 $232,500 Computer time 4,000 31,000 Travel and allowances 14,000 81,000 Telephones/faxes 4,500 21,000 Photocopying 6,500 14,500 Total $70,000 $380,000 Hamilton decides to calculate the costs of each job as if Timlin had used six direct-cost pools and a single indirect-cost pool. The single indirect-cost pool would have $175,000 of costs and would be allocated to each case using the professional labor-hours base. 1. Calculate the revised indirect-cost allocation rate per professional labor-hour for Timlin Associates when total indirect costs are $175,000. 2. Compute the costs of the Lopez Enterprises and Clinical Inc. jobs if Timlin Associates had used its re- fined costing system with multiple direct-cost categories and one indirect-cost pool. 3. Compare the costs of Lopez Enterprises and Clinical Inc. jobs in requirement 2 with those calculated using the simple costing system. Comment on the results