Homework: HW #2 - Chapter 3 Score: 0.4 of 1 pt S3-14 (similar to) 3 of 10 (2 complete) Save HW Score: 14%, 1.4 of 10 p Question Help Holman Associates, a law firm, hires Attorney Mary Nault at an annual salary of $187,500. The law firm expects her to spend 2,500 hours a year performing legal worl for clients. Indirect costs are assigned to clients based on attorney billing hours. Firm attorneys are expected to work a total of 22,000 direct labor hours this year. Before the fiscal year begins, Holman estimates that the total indirect costs for the upcoming year will be $220,000. Read the requirements. 1. What would be the hourly (cost) rate to Holman Associates of employing Nault? Identify the correct formula and compute the hourly rate. $ Annual salary 187,500 Hours per year 2,500 Hourly rate = $ 75 2. If Nault works on Client 367 for 16 hours, what direct labor cost would be traced to Client 367? Identify the correct formula and compute the direct labor cost. Hourly rate 75 Billing hours 16 = $ Direct labor cost 1,200 3. What is the indirect cost allocation rate? Identify the correct formula and compute the total indirect cost allocation rate. Total estimated indirect costs + 220,000 = Hourly rate Choose from any list or enter any number in the input fields and then click Check Answer.