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Kane & Associates is a local legal entity employing six solicitors, four paralegals and six administrative staff. The entity has a costing system that assigns

Kane & Associates is a local legal entity employing six solicitors, four paralegals and six administrative staff. The entity has a costing system that assigns costs to clients. There are two departments legal support and commercial. The entity uses a different indirect cost rate for each department. The following information was taken from the budget for the coming year.

Legal support department

Commercial

department

Planned solicitor hours 3,200 12,400
Planned paralegal hours 4,100
Number of clients 300 950
Legal supplies $16,200 $27,000
Salaries solicitors and paralegals $162,000 $810,000
Indirect costs $108,000 $450,000

The indirect costs are allocated to the clients as follows.

Departmental indirect costs number of solicitor and paralegal hours. Legal supplies are charged on a per client basis.

The entity uses a cost-plus pricing policy with a 20 per cent mark-up.

Client Case Number FR110 has been completed and is ready for the invoice to be sent to the client. The following costs and times were recorded for the client.

Solicitor hours Support 65 hours. Solicitor hours Commercial 187 hours. Direct cost of solicitors $14,000.

A/ Calculate the indirect cost rate for each department. (Round answers to 2 decimal places, e.g. 15.25.) B/ calculate the indirect cost rate for legal supplies. C/ determine the total cost for client case FR110. D/ calculate the amount the client should be invoiced for the work undertaking.

this my second time posting this question , please take your time to answer these questions correctly.

thank you

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