Lincoln & Associates is a law firm specializing in labor relations and employee-related work. It employs 25 professionals (5 partners and 20 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.) Lincoln has just completed a review of its job-costing system. (Click the icon to view the job-costing review information.) Budgeted information for 2020related to the two direct-cost categories is as follows: (Click the icon 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. + per hour = per hour The average budgeted total compensation per professional for 2020 is $104,000. Each professional is budgeted to have 1,600 billable hours to clients in 2020. All professionals work for clients to their maximum 1,600 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 Lincoln & 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 $2,200,000. 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 Number of professionals Hours of billable time per professional Total compensation (average per professional) Professional Partner Labor Professional Associate Labor 20 1,600 per year 1,600 per year 200,000 $ 80,000 Budgeted information for 2020relating to the two indirect-cost categories is as follows: as follows: Richardson Punch Direct-costs $ 5,200 $ Indirect-costs 4,400 9,100 7,700 $ 9,600 $ 16,800 Total costs General Support Secretarial Support Total costs $ 1,800,000 $ 400,000 Cost-allocation base Professional labor-hours Partner labor-hours