Keaton \& 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. 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.) Keaton 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 th 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.) Partner Assoc. 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. 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 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 the cost of the job when compared to the previous method. Requirement 5. Would you recommend Keaton \& Associates use the job-costing system in the previous method or the job-costing system in this problem? Explain. I would recommend that Keaton \&. Associates use the job costing system with two direct- and two indirect- cost categories. The job costing system more accurately represents the costs incurred on different jobs and therefore helps managers make better decisions. (Click the icon to view the budgeted information.) Read the requirements. Requirements t 1. Compute the 2020 bu ecting the formula, then e More info t 2. Compute the 2020 bu ecting the formula, then e This review included a detailed analysis of how past jobs used the firm's resources and interviews with personnel about what factors drive the level of indirect costs. Management concluded that a system with two direct-cost categories (professional partner labor and professional associate labor) and two indirect-cost categories (general support and secretarial support) would yield more accurate job costs. 1. Compute the 2020 budgeted direct-cost rates for (a) professional partners and (b) professional associates. 2. Compute the 2020 budgeted indirect-cost rates for (a) general support and (b) secretarial support. 3. Compute the budgeted costs for the Richardson and Punch jobs, given the following information: 4. Comment on the results in requirement 3 . Why are the job costs different from those computed using the firm's previous method? 5. Would you recommend Keaton \& Associates use the job-costing system in the previous method or the job-costing system in this problem? Explain. t 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. Data table Data table 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 Keaton \& 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. The cost estimates for the Richardson, Inc. job, which requires 80 budgeted hours of professional labor and for the Punch, Inc. job, which requires 140 budgeted hours of professional labor are as follows