Kahn & Associates is a law firm specializing in labor relations and employee related work. It employs 30 professionals (10 partners and 20 associates) who work directly with its clients. Previously the firm accounted for ali professional labor cost in a single 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. (Click the icon to view the job-costing review information.) Budgeted information for 2020 related to the two direct-cost categories is as follows: (Click the icon to view the budgeted information.) Read the requirements. Requirement 1. Compute the 2020 budgeted direct-cost rates for (a) professional partners and (b) professional associates. Begin by selecting the formula, then enter the amounts to compute both rates. (Abbreviations used: Assoc. = Associate.) Budgeted direct cast rate per hour por hour = Partner Assoc. per hour Requirement Compute the 2020 budgeted indirect-cost rates for (a) general support and (b) secretarial support. Begin by selecting the formula, then enter the amounts to compute both rates. (Round your answers to the nearest whole dollar) Kahn & Associates is a law firm specializing in labor relations and employee-related work. It employs 30 professionals (10 partners and 20 associales) who work directly with its clients. Previously the firm Kahn has just completed a review of its jobsting system. i (Click the icon to view the job-costing review information.) i Data Table Data Table The average budgeted total compensation per professional for 2020 is $105.000. Each professional is budgeted to have 1,500 billable hours to clients in 2020. All professionals work for clients to their maximum 1,500 billable hours available. All professional labor costs are included in a single cirect-cost category and are traced to jobs on a per-hour basis. All costs of Kahn & Associates other than professional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2020 $2,835,000. Professional Partner Labor Professional Associate L2 Number of professionals 10 20 Hours of billable time per professional 1,500 per year 1,500 per year Total compensation (average per S 195,000 $ professional) 60,000 Budgeted information for 2020 relating to the two indirect-cost categories is as follows: General Support Secretarial Support Total costs 2.250,000 S 585.000 Cost-allocation base Professional labar-hours Partner labor-hours The cost estimates for the Richardson, Inc. job, which requires 125 budgeted hours of professional labd and for the Punch, Inc. job, which requires 165 budgeted hours of professional labor are as follows: Richardson Punch Direct-costs S 9,750 S 7,875 Indirect costs 11,550 10,395 21.945 S 16,625 $ Total costs Print Done Kahn & Associates is a law firm specializing in labor relations and employee-related work. It employs 30 professionals (10 partners and 20 associates) who work directly with its clients. Previously the firm accounted for all professional labor cost in a single 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.) Kahin has just completed a review of its job-osting system, (Click the icon to view the job-costing review information.) Budgeted Infomation for 2020 related to the two direct-cost categories is as follows: (Click the icon to view the budgeted information.) Read the resuirements Requirement 2. Compute the 2020 budgeted indirect-cost rates for (a) general support and (b) secretarial support. Begin by selecting the formula then enter the amounts to compute both rates. (Round your answers to the nearest whole dollar.) Budgeted indirect cost rate per hour per hour General Secretarial per hour Requirement 3. Compute the budgeted costs for the Richardson and Punch jobs based upon the hours each job is budgeted to use. Richardson, Inc. Punch, Inc. Direct-costs: Professional partners Professional associates Direct-costs Indirect-costs General support 1 Secretarial 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 V than the firm's previous method. The two jobs and therefore the allocation method used in requirement 3 the cost of the job when compared to the The Richardson job has a relatively higher use of previous method. Requirement 5. Would you recommend Kahn & Associates use the job-costing system in the previous method or the job-costing system in this problem? Explain. more accurately I would recommend that Kahn & Associates use the job costing system with two direct- and two indirect-cost categories. The job costing system represents the costs incurred on different jobs and therefore helps managers make better decisions. Kahn & Associates is a law firm specializing in labor relations and employee related work. It employs 30 professionals (10 partners and 20 associates) who work directly with its clients. Previously the firm accounted for ali professional labor cost in a single 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. (Click the icon to view the job-costing review information.) Budgeted information for 2020 related to the two direct-cost categories is as follows: (Click the icon to view the budgeted information.) Read the requirements. Requirement 1. Compute the 2020 budgeted direct-cost rates for (a) professional partners and (b) professional associates. Begin by selecting the formula, then enter the amounts to compute both rates. (Abbreviations used: Assoc. = Associate.) Budgeted direct cast rate per hour por hour = Partner Assoc. per hour Requirement Compute the 2020 budgeted indirect-cost rates for (a) general support and (b) secretarial support. Begin by selecting the formula, then enter the amounts to compute both rates. (Round your answers to the nearest whole dollar) Kahn & Associates is a law firm specializing in labor relations and employee-related work. It employs 30 professionals (10 partners and 20 associales) who work directly with its clients. Previously the firm Kahn has just completed a review of its jobsting system. i (Click the icon to view the job-costing review information.) i Data Table Data Table The average budgeted total compensation per professional for 2020 is $105.000. Each professional is budgeted to have 1,500 billable hours to clients in 2020. All professionals work for clients to their maximum 1,500 billable hours available. All professional labor costs are included in a single cirect-cost category and are traced to jobs on a per-hour basis. All costs of Kahn & Associates other than professional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2020 $2,835,000. Professional Partner Labor Professional Associate L2 Number of professionals 10 20 Hours of billable time per professional 1,500 per year 1,500 per year Total compensation (average per S 195,000 $ professional) 60,000 Budgeted information for 2020 relating to the two indirect-cost categories is as follows: General Support Secretarial Support Total costs 2.250,000 S 585.000 Cost-allocation base Professional labar-hours Partner labor-hours The cost estimates for the Richardson, Inc. job, which requires 125 budgeted hours of professional labd and for the Punch, Inc. job, which requires 165 budgeted hours of professional labor are as follows: Richardson Punch Direct-costs S 9,750 S 7,875 Indirect costs 11,550 10,395 21.945 S 16,625 $ Total costs Print Done Kahn & Associates is a law firm specializing in labor relations and employee-related work. It employs 30 professionals (10 partners and 20 associates) who work directly with its clients. Previously the firm accounted for all professional labor cost in a single 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.) Kahin has just completed a review of its job-osting system, (Click the icon to view the job-costing review information.) Budgeted Infomation for 2020 related to the two direct-cost categories is as follows: (Click the icon to view the budgeted information.) Read the resuirements Requirement 2. Compute the 2020 budgeted indirect-cost rates for (a) general support and (b) secretarial support. Begin by selecting the formula then enter the amounts to compute both rates. (Round your answers to the nearest whole dollar.) Budgeted indirect cost rate per hour per hour General Secretarial per hour Requirement 3. Compute the budgeted costs for the Richardson and Punch jobs based upon the hours each job is budgeted to use. Richardson, Inc. Punch, Inc. Direct-costs: Professional partners Professional associates Direct-costs Indirect-costs General support 1 Secretarial 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 V than the firm's previous method. The two jobs and therefore the allocation method used in requirement 3 the cost of the job when compared to the The Richardson job has a relatively higher use of previous method. Requirement 5. Would you recommend Kahn & Associates use the job-costing system in the previous method or the job-costing system in this problem? Explain. more accurately I would recommend that Kahn & Associates use the job costing system with two direct- and two indirect-cost categories. The job costing system represents the costs incurred on different jobs and therefore helps managers make better decisions