Kahn & Associates is a law firm specializing in labor relations and employee$-$related work. It

employs $30$ professionals $(5$ partners and $25$ 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.$)$

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.$)$

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.

Requirement $3.$ Compute the budgeted costs for the Richardson and Punch jobs based upon the hours each job is budgeted to use.

Richardson, Inc.

Direct$-$costs:

Professional partners

Professional associates

Direct$-$costs

Indirect$-$costs

General support

Secretarial support

Indirect$-$costs

Total costs

The average budgeted total compensation per professional for $2020$ is $$97,500.$ 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 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

The cost estimates for the Richardson, Inc. job, which requires $90$ budgeted hours of professional

labor and for the Punch, Inc. job, which requires $140$ budgeted hours of professional labor are

Data table