Kahn & Associates is a law firm specialting in labor relations and employee-related work Kahn has just completed a review of its job-costing system employs 20 professionals (4 partners and 16 associates) who work directly with its clients. Previously the firm accounted for al professional labor cost in a single direct cost account (Click the icon to view the job-costing review information) and all other costs in a single indirect-cost pool Budgeted information for 2020 related to the two direct cost categories is as follows: Click the icon to view the cost information and rates under the previous method) Click the foon 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 cost rate per hour Partner Assoc Requirement 2. Compute the 2020 budgeted indirect-cost rates for (a) general support and (b) secretarial support Begin by selecting the formule, then enter the amounts to compute both ruten. (Round your awwers to the newest whole dollar) Budgeted indirect cost rate per hour per hour per hour General per hour per hour Secretarial Next 1 P 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: I Professional partners Professional associates Direct-costs Indirect costs General support Secretarial support Indirect-costs Total costs Demant A Camment en the reste in ment 2 Mhin the inhee Hirnt from the name the fire nu the cost of the job 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 the cost system is than the firm's previous method. The two jobs The Richardson job has a relatively higher use of and therefore the allocation method used in requirement 3 when compared to the previous method. Requirement 5. Would you mcommond Kahn & Associates use the job-costing system in the previous method or the job conting system in this problem? Explain, I would recommend that Kahn & Associates use the job coating watem with two direct and two indirect.coot categories. The job conting system more accurately represents the costs incurred on different jobs and therefore helps managers make better decision. Next Data Table The average budgeted total compensation per professional for 2020 is $108,000. 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 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 $2,250,000. The cost estimates for the Richardson, Inc. job, which requires 100 budgeted hours of professional labor and for the Punch, Inc. job, which requires 140 budgeted hours of professional labor are as follows: Richardson Punch Direct-costs $ 7,200 $ 7,500 10,080 10,500 Indirect-costs Total costs $ 14,700 $ 20,580 Print Done Data Table Professional Partner Labor Professional Associate Labor Number of professionals 4 16 Hours of billable time per professional 1,500 per year 1,500 per year Total compensation (average per professional) 180,000 90,000 Budgeted information for 2020 relating to the two indirect-cost categories is as follows: General Support Secretarial Support Total costs $ 1,950,000 $ 300,000 Cost-allocation base Professional labor-hours Partner labor-hours Print Done