Beddop App V1 Tell me what you want to do . . I u ovAvA Edith Problem 1 (25 marks) Page Break Kidman has just completed a review of its job-costing system. This review included a detailed analysis of how past jobs used the firm's resources and interviews with personnel about what factors drive the level of indirect costs. Management concluded that a system with two direct cost categories (professional partner labor and professional associate labor) and two indirect-cost categories (general support and secretarial support) would yield more accurate job costs. Budgeted information for 2017 related to the two direct cost categories is as follows: Professional Partner Labor Professional Associate Labor 5 25 Number of professionals Hours of billable time per professional 1,500 per year 1,500 per year $210,000 $75,000 Total compensation (average per professional) Budgeted information for 2017 relating to the two indirect-cost categories is as follows: General Support Secretarial Support $450,000 Partner labor hours $2,025,000 Professional labor- hours Total costs Cost-allocation base une per professional Total compensation (average per professional) 1,500 per year $210,000 1,500 per year $75,000 Budgeted information for 2017 relating to the two indirect-cost categories is as follows: General Support Total costs Cost-allocation base $2,025,000 Professional labor- hours I Secretarial Support $450,000 Partner labor hours Required 1. Compute the 2017 budgeted direct-cost rates for (a) professional partners and (b) professional associates. 2. Compute the 2017 budgeted indirect-cost rates for (a) general support and (b) secretarial support. 3. Compute the budgeted costs for the Richardson and Punch jobs, given the following information: Richardson, Inc. Punch, Inc. Professional partners 48 hours 32 hours Professional 72 hours 128 hours associates