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How determine the formula used to calculate the indirect costs for each job. Prof. labor hours for job Indirect cost rate per hour Indirect costs allocated to job Now compute the cost of the jobs using the simple costing system. Lota St. Jane's Coal Glass 1 Direct professional labor $ 12.750 15.000 Indirect costs allocated $ 27.750 Total x i More Info Higgins also received a phone call from its only other client (St. Jane's Glass), which was very pleased with both the quality of the work and the price charged on its most recent job. Vrabel Associates operates at capacity and uses a cost-based approach to pricing (billing) each job. Currently it uses a simple costing system with a single direct-cost category (professional labor-hours) and a single indirect-cost pool (general support). Indirect costs are allocated to cases on the basis of professional labor-hours per case. The job files show the following: Lota Coal St. Jane's Glass Professional labor 150 hours 100 hours Professional labor costs at Vrabel Associates are $85 an hour. Indirect costs are allocated to cases at $100 an hour. Total indirect costs in the most recent period were $25.000 Vrabel Associates is a recently formed law partnership Josh Higgins the managing partner of Vrabel Associates, has just finished a tense phone call with John Nader prosent of Lola Coal Nader strongly complained about the price Vrabel charged for some legal work done for Lota Coal (Click the icon to view additional information Requirements