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Answer the following questions using the information below: Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs
Answer the following questions using the information below: Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 20X3: Budget Actual Indirect costs $300,000 Annual salary of each attorney $110,000 $270,000 $100,000 Annual salary of each paraprofessional $ 29,000 - S 30,000 Total professional labor-hours 60,000 dlh 50,000 dlh When a normal costing system is used, clients using proportionately more attorney time than paraprofessional time will: O be billed accurately for actual resources used O be overbilled for actual resources used O be underbilled for actual resources used O result in an underallocation of direct costs
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