Bradley Associates is a recently formed law partnership. Bradley Associates operates at capacity and uses a cost-based approach to pricing (billing) each job Bradley currently uses a simple costing system. 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 for two of Bradley's clients. Widnes Coal and St. Helen's Glass, show the following: Professional labor costs at Bradley Associates are $90 an hour. Indirect costs are allocated to cases at $115 an hour. Total indirect costs in the most recent period were $25,300. Hanley asks his assistant to collect details on those costs included in the $25,300 indirect-cost pool that can be traced to each individual job. After analysis. Bradley is able to reclassify $17,600 of the $25,300 as direct costs: Hanley decides to calculate the costs of each job as if Bradley had used six direct cost-pools and a single indirect-cost pool. The single indirect-cost pool would have $7,700 of costs and would be allocated to each case using the professional labor-hours base. Bradley has two classifications of professional staff: partners and associates. Hanley asks his assistant to examine the relative use of partners and associates on the recent Widnes Coal and St. Helens jobs. The Widnes job used 40 partner-hours and 80 associate-hours. The St. Helen's job used 60 partner-hours and 40 associate-hours. Therefore, totals of the two jobs together were 100 partner-hours and 120 associate hours. Hanley decides to examine how using separate direct-cost rates for partners and associates and using separate indirect-cost pools for partners and associates would have affected the costs of the Widnes and St. Helen's jobs. Indirect costs in each indirect-cost pool would be allocated on the basis of total hours ofthat category of professional labor. From the total indirect cost-pool of $7.700. $5.000 is attributable to the activities of partners, and $2.700 is attributable to the activities of associates. The rates per category of professional labor are as follows