Kahn & Associates is a law firm specializing in labor relations and employee-related work. It employs 20 professionals (5 partners and 15 associates) who work directly with its clients. The average budgeted total compensation per professional for 2020 is $97,500. Each professional is budgeted to have 1,250 billable hours to clients in 2020. All professionals work for clients to their maximum 1,250 billable hours available. All professional labor costs are included in a single direct-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 is $1,750,000 Requirements 1. Identify the components of the overview diagram of Kahn's job-costing system. 2. Compute the 2020 budgeted direct-cost rate per hour of professional labor. 3. Compute the 2020 budgeted indirect-cost rate per hour of professional labor. 4. Kahn & Associates is considering bidding on two jobs: a. Litigation work for Richardson, Inc., which requires 75 budgeted hours of professional labor. b. Labor contract work for Punch, Inc., which requires 130 budgeted hours of professional labor. Prepare a cost estimate for each job. Print Done Requirement 1. Identify the components of the overview diagram of Lewis's job-costing system. A Indirect Cost Pool A } B B Legal support c} C Cost Allocation Base D Professional Labor-Hours F E E Cost Object: Job for Client F Indirect Costs G Direct Costs G } H Direct Costs | Professional Labor Requirement 2. Compute the 2020 budgeted direct-cost rate per hour of professional labor. Select the formula to compute the budgeted direct-cost rate, then enter the amounts and calculate the rate. Budgeted direct- cost rate per hour per hour | Requirement 3. Compute the 2020 budgeted indirect-cost rate per hour of professional labor. Select the formula to compute the budgeted indirect-cost rate, then enter the amounts and calculate the rate. Budgeted indirect- cost rate per hour per hour Requirement 4. Prepare a cost estimate for the Richardson, Inc. job, which requires 115 budgeted hours of professional labor and for the Punch, Inc. job, which requires 140 budgeted hours of professional labor. Richardson Direct-costs Indirect-costs Total costs Punch