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 Research support labor Computer time Travel and allowances Telephone taxes Photocopying Total Lopez Enterprises $11.000 4000 14.000 4500 6.500 $70,000 Clinical $99.500 31.000 81.000 21.000 14.500 $380.000 Hamilton decides to calculate the costs of each job as if Timlin had used six direct cost pools and single indirect cost pool. The single indirect cost pool would have $175,000 of costs and would be allocated to anch case using the professional labor-hours base Required 1. Calculate the revised indirect cost allocation rate per professional labor hour for Timlin Associates when total tridirect costs are $175,000 2. Compute the costs of the Loper Enterprises and Clinical Inc. jobs if Timlin Associates had used its fired costing system with multiple direct cost categories and one indirect cost pool 3. Compare the costs of Lopez Enterprises and Clinical Inc. jobs in RUSSIC support Computer time Travel and allowances Telephones/taxes Photocopying Total 4.000 14.000 4500 16.500 $70 000 943, . 31.000 81,000 21,000 14.500 $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 Required 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 refined 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