Nixon & Ross, a law firm, is about to install a new accounting system that will allow the firm to track more of the overhead costs to individual cases. Overheads are currently allocated to individual client cases based on billable professional staff salaries. Attorneys working on client cases charge their time to "billable professional staff salaries." Attorney time spent in training, law firm administrative meetings, and the like is charged to an overhead account titled "unbilled staff salaries." The following is a summary of the costs for the current year: Billable professional staff salaries $ 4,000,000 Overhead 8,000,000 Total costs $12,000,000 The overhead costs were as follows: Secretarial costs $1,500,000 Staff benefits 2,750,000 Office rent 1,250,000 Telephone and mailing costs 1,500,000 Unbilled staff salaries 1,000,000 Total costs $8,000,000 Under the new accounting system, the firm will be able to trace secretarial costs, staff benefits, and telephone and mailing costs to specific clients. The following are the costs incurred on the Lawson Company case: Billable professional staff salaries $150,000 Secretarial costs 25,000 Staff benefits 13,500 Telephone and mailing costs 8,000 Total costs $196,500 a. Calculate the current year