Ellsbury Asscciates is a recently formed law partnership. Cindy Hordwich, the managing partner of Elsbury Associatos, has just finished a tense phone cal with Matt Janek, president of Janek Enterpeises. Mat strongy complained about the pnce Elisbury charged for some legal work done for his company. (1) (Click the ioan to view additional inlormation) Road the reguicements More info Hardwich also received a phone cal from Elabury's only other client, Clinical ino. Which was very pleased wth both the quasty of the work and the price charged on its most recent job. Elsbury Associates operales at capochy and uses a cost-based approach to priong (biling) each jot. Currenty it utes a simple costing system with a single direct-cost category (prolessional labor-hours) and a single indeect-ces! pool (general wupport). indired costh are allocatod to cases on the basis of professional laberhourn per case. The job files show the following Prolesvional labor costs at Elisbury Associates are $150 an nour, indrect costs are allocated to cases at $115 an haur. Total indirect costs in the most recent penod were $575,000 joual jobs? o costing system (Abbrewation used: prot * professional) Elsbury Associates is a recenty formed law partnership. Cindy Hardwich, the managing partner of Elisbury Assobiates, has just finished a tense phone call with Matt Janek, prosident of Janek Enterprises. Matl atrongly complained about the price Elisbury charged for some legat work done for his company (Click the icon to view additional infocmation) Read the cequirements: Requirement 1. Why is it important for Ellsbury Associates to understand the costs associated with individual jobs? A. Operating at or above capacity for the company lowers overal costs to individual jobs. B. Pricing decisiens are heavily infuenced by reported cost numbers C. Overstalfing any job would be detrimental to the comparys bottom ine D. Al of the atove Requirement 2. Compute the costs of the Janok Enterprises and Cinical Inc. jobs using Elisbury's simple costing systom. (Abbreviation used: prot = prolessionat) Begin by determining the formula used to calculate the direct costs for each job. Now determine the formula used to calculate the indirect costs for each job. Now compute the cost of the jobs using the simple costing system