Cost information and rates under previous method - The average budgeted total compensation per professional for 2022 is $97,500. Each professional is budgeted to have 1,250 billable hours to clients in 2022. Kahn is a highly respected firm, and all professionals work for clients to their maximum 1,250 billable hours available. All professional labour costs are included in a single direct cost category and are traced to jobs on a per-hour basis. All costs of Kahn & Partners other than professional labour costs are included in a single indirect cost pool (legal support) and are allocated to jobs using professional labour hours as the allocation base. The budgeted level of indirect costs in 2022 is $1,750,000. The cost estimates for the Richardson Inc. job, which requires 100 budgeted hours of professional labour, and for the Punch Inc. job, which requires 160 budgeted hours of professional labour, are as follows: Richardson Punch Direct costs $ 7,800 $ 12,480 7,000 Indirect costs 11,200 14,800 $ 23,680 Total costs Print Done Budgeted information Number of professionals Professional Partner Labour Professional Manager Labour 5 15 1,250 per year 1,250 per year 165,000 $ 75,000 Hours of billable time per professional Total compensation (average per professional) $ Budgeted information for 2022 relating to the two indirect cost categories is as follows: General Support Administration Support Total costs $ 1,375,000 $ 375,000 Cost allocation base Professional labour-hours Partner labour-hours Print Done - X Kahn & Partners is a law firm specializing in labour relations and employee-related work. It employs 20 professionals (5 partners and 15 managers) who work directly with its clients. Previously, the firm accounted for all professional labour costs in one direct cost account and all other costs in a single indirect cost pool. (Click the icon to view the cost information and rates under the previous method.) Kahn 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 labour and professional manager labour) and two indirect cost categories (general support and administration support) would yield more accurate job costs. Budgeted information for 2022 related to the two direct cost categories is as follows: (Click the icon to view the budgeted information.) Required Requirement 1. Compute the 2022 budgeted direct cost rates for (a) professional partners and (b) professional managers. Begin by selecting the formula and then enter the amounts to compute both rates. = Budgeted direct cost rate per hour Partner Manager per hour per hour Budgeted billable hours per professional Requirem Begin by s Budgeted compensation per professional a) general support and (b) administration support. e both rates. Budgeted indirect costs General Budgeted total direct labour-hours Number of professionals Budgeted indirect =cost rate per hour per hour Next Requirement 1. Compute the 2022 budgeted direct cost rates for (a) professional partners and (b) professional managers. Begin by selecting the formula and then enter the amounts to compute both rates. Budgeted direct cost rate per hour Partner Manager per hour per hour Requirement 2. Compute the 2022 budgeted indirect cost Budgeted billable hours per professional Begin by selecting the formula and then enter the amounts Budgeted compensation per professional General Budgeted indirect costs indirect per hour Budgeted total direct labour-hours per hour Number of professionals Kahn & Partners is a law firm specializing in labour relations and employee-related work. It employs 20 professionals (5 partners and 15 managers) who work directly with its clients. Previously, the firm accounted for all professional labour costs in one direct cost account and all other costs in a single indirect cost pool. (Click the icon to view the cost information and rates under the previous method.) Kahn 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 labour and professional manager labour) and two indirect cost categories (general support and administration support) would yield more accurate job costs. Budgeted information for 2022 related to the two direct cost categories is as follows: (Click the icon to view the budgeted information.) Required Requirement 2. Compute the 2022 budgeted indirect cost rates for (a) general support and (b) administration support. Begin by selecting the formula and then enter the amounts to compute both rates. Budgeted indirect = cost rate per hour General Administr = per hour per hour Budgeted billable hours per professional Requirem | Punch jobs, given the following information: Budgeted compensation per professional Punch Inc. Direct cos Budgeted indirect costs Professi Professi Budgeted quantity of allocation base Number of professionals Next Requirement 2. Compute the 2022 budgeted indirect cost rates for (a) general support and (b) administration support. Begin by selecting the formula and then enter the amounts to compute both rates. Budgeted indirect cost rate per hour General Administration per hour per hour Budgeted billable hours per professional Requirement 3. Compute the budgeted costs for the Rich: Richardson Inc. Budgeted compensation per professional Direct costs: Professional partners Professional managers Budgeted indirect costs Budgeted quantity of allocation base Number of professionals Requirement 3. Compute the budgeted costs for the Richardson and Punch jobs, given the following information: Richardson Inc. Punch Inc. Direct costs: Professional partners Professional managers Direct costs Indirect costs General support Administration support Indirect costs Total costs Requirement 4. Comment on the results in requirement 3. Why are the job costs different from those computed using the firm's previous method? In requirement 3, the cost system is a than the firm's previous method. The two jobs The Richardson job has a relatively hig the cost of the job when c and, therefore, the allocation method used in requirement 3 more refined method simpler method N Requirement 4. Comment on the results in requirement 3. Why are the job costs different from those computed using the firm's previous method? In requirement 3, the cost system is a than the firm's previous method. The two jobs The Richardson job has a relatively higher use of the cost of the job when compared to the previous method. and, therefore are the same in their use of resources. differ in their use of resources. x1 Indirect costs Total costs Requirement 4. Comment on the results in requir In requirement 3, the cost system is a The Richardson job has a relatively higher use of the less costly manager-related resources, the more costly partner-related resources, the cost of the job when compared to the previous method. mputed using the firm's previous method? obs and, therefore, the allocation method used in requirement 3 Ne decreases increases nent on the results in requirement 3. Why are the job costs different from those computed using the firm's previous method? ost system is a than the firm's previous method. The two jobs s a relatively higher use of and, therefore, the allocation method used in requirement 3 the cost of the job when compared to the previous method