= Homework: 3-1 MyAccounting Lab Homework: Chapter 5 Question 5, P5-32 (similar to) > Part 4 of 6 HW Score: 44.15%, 19.87 of 45 points Points: 1.61 of 9 Save Ellsbury Associates is a recently formed law partnership. Ellsbury Associates operates at capacity and uses a cost-based approach to pricing (billing) each job. 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 Ellsbury's clients, Parker Enterprises and Magnet Inc., show the following: (Click the icon to view the data using the simple costing system.) (Click the icon to view additional data.) Read the requirements. Now compute the total costs of each job. Direct costs: Direct professional labor Research support labor Computer time Travel and allowances Telephones/faxes Photocopying Total direct costs Indirect costs to be allocated Total costs of job Parker Enterprises Help me solve this Etext pages Data table Data table - Parker Enterprises Magnet Inc. Professional labor 2,800 hours 2,200 hours Professional labor costs at Ellsbury Associates are $240 an hour. Indirect costs are allocated to cases at $110 an hour. Total indirect costs in the most recent period were $550,000. Total cost of the jobs using the simple costing system are as follows: Katrina Hickman, the managing partner of Ellsbury Associates, asks her assistant to collect details on those costs included in the $550,000 indirect-cost pool that can be traced to each individual job. After analysis, Ellsbury is able to reclassify $300,000 of the $550,000 as direct costs: Other Direct Costs Parker Enterprises Magnet Inc. Research support labor $ 35,000 $ 92,900 Computer time 7,000 26,000 Parker Enterprises Magnet Inc. Travel and allowances 14,000 81,000 Telephones/faxes 3,500 20,000 6,300 14,300 Direct professional labor Indirect costs allocated $ 672,000 $ 308,000 528,000 242,000 Photocopying $ 65,800 $ 234,200 Total $ 980,000 $ 770,000 Total Hickman decides to calculate the costs of each job as if Ellsbury had used six direct-cost pools and a single indirect-cost pool. The single indirect-cost pool would have $250,000 of costs and would be allocated to each case using the professional labor-hours base. Print Done Print Done