PLZ HELP ME FINISH QUESTION 3, L ALWAYS WRONG
The average budgeted total compensation per professional for 2022 is $97,500. Each professional is budgeted to have 1,250 billable hours to clients in 2022. Lyon is a highly respected firm, and all professionals work for clients to their maximum 1,250 billable hours available. All professional labour costs are included in a single direct cost category and are traced to jobs on a per-hour basis. All costs of Lyon & Partners other than professional labour costs are included in a single indirect cost pool (legal support) and are allocated to jobs using professional labour hours as the allocation base. The budgeted level of indirect costs in 2022 is $1,750,000. The cost estimates for the Richardson Inc. job, which requires 110 budgeted hours of professional labour, and for the Punch Inc. job, which requires 165 budgeted hours of professional labour, are as follows: Richardson Punch Direct costs $ 8,580 $ 7,700 12,870 11,550 Indirect costs $ 16.280 $ 24.420 Lyon & Partners is a law firm specializing in labour relations and employee-related work. It employs 20 professionals (5 partners and 15 managers) who work directly with its clients. Previously, the firm accounted for all professional labour costs in one direct cost account an all other costs in a single indirect cost pool. (Click the icon to view the cost information and rates under the previous method.) Lyon has just completed a review of its job-costing system. 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 labour and professional manager labour) and two indirect cost categories (general suppo and administration support) would yield more accurate job costs. Budgeted information for 2022 related to the two direct cost categories as follows: E: (Click the icon to view the budgeted information.) Required Requirement 1. Compute the 2022 budgeted direct cost rates for (a) professional partners and (b) professional managers. Begin by selecting the formula and then enter the amounts to compute both rates. Budgeted billable hours per professional Budgeted direct cost rate per hour = Partner Budgeted compensation per professional $ 165,000 $ 75,000 1 1,250 = $ 132 per hour Manager 1,250 $ 60 per hour Requirement 2. Compute the 2022 budgeted indirect cost rates for (a) general support and (b) administration support. Begin by selecting the formula and then enter the amounts to compute both rates. Budgeted indirect costs / Budgeted quantity of allocation base = General $ 1,375,000 25,000 Budgeted indirect cost rate per hour $ 55 per hour $ 60 per hour Administration $ 375,000 6,250 Requirement 3. Compute the budgeted costs for the Richardson and Punch iobs given the following information: Requirement 3. Compute the budgeted costs for the Richardson and Punch jobs, given the following information: Richardson Inc. Punch Inc. Direct costs: Professional partners $ 4224 5,808 3,960 7920 Professional managers Direct costs $ 9,768 12144 Indirect costs General support 6,050 9020 Administration support 2,640 1920 Indirect costs 8,690 10940 18,458 23084 Total costs Professional Partner Labour Professional Manager Labour 5 15 Number of professionals Hours of billable time per professional 1,250 per year 1,250 per year 75,000 Total compensation (average per professional) $ 165,000 $ Budgeted information for 2022 relating to the two indirect cost categories is as follows: General Support Administration Support Total costs $ 1,375,000 $ 375,000 Cost allocation base Professional labour-hours Partner labour-hours The average budgeted total compensation per professional for 2022 is $97,500. Each professional is budgeted to have 1,250 billable hours to clients in 2022. Lyon is a highly respected firm, and all professionals work for clients to their maximum 1,250 billable hours available. All professional labour costs are included in a single direct cost category and are traced to jobs on a per-hour basis. All costs of Lyon & Partners other than professional labour costs are included in a single indirect cost pool (legal support) and are allocated to jobs using professional labour hours as the allocation base. The budgeted level of indirect costs in 2022 is $1,750,000. The cost estimates for the Richardson Inc. job, which requires 110 budgeted hours of professional labour, and for the Punch Inc. job, which requires 165 budgeted hours of professional labour, are as follows: Richardson Punch Direct costs $ 8,580 $ 7,700 12,870 11,550 Indirect costs $ 16.280 $ 24.420 Lyon & Partners is a law firm specializing in labour relations and employee-related work. It employs 20 professionals (5 partners and 15 managers) who work directly with its clients. Previously, the firm accounted for all professional labour costs in one direct cost account an all other costs in a single indirect cost pool. (Click the icon to view the cost information and rates under the previous method.) Lyon has just completed a review of its job-costing system. 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 labour and professional manager labour) and two indirect cost categories (general suppo and administration support) would yield more accurate job costs. Budgeted information for 2022 related to the two direct cost categories as follows: E: (Click the icon to view the budgeted information.) Required Requirement 1. Compute the 2022 budgeted direct cost rates for (a) professional partners and (b) professional managers. Begin by selecting the formula and then enter the amounts to compute both rates. Budgeted billable hours per professional Budgeted direct cost rate per hour = Partner Budgeted compensation per professional $ 165,000 $ 75,000 1 1,250 = $ 132 per hour Manager 1,250 $ 60 per hour Requirement 2. Compute the 2022 budgeted indirect cost rates for (a) general support and (b) administration support. Begin by selecting the formula and then enter the amounts to compute both rates. Budgeted indirect costs / Budgeted quantity of allocation base = General $ 1,375,000 25,000 Budgeted indirect cost rate per hour $ 55 per hour $ 60 per hour Administration $ 375,000 6,250 Requirement 3. Compute the budgeted costs for the Richardson and Punch iobs given the following information: Requirement 3. Compute the budgeted costs for the Richardson and Punch jobs, given the following information: Richardson Inc. Punch Inc. Direct costs: Professional partners $ 4224 5,808 3,960 7920 Professional managers Direct costs $ 9,768 12144 Indirect costs General support 6,050 9020 Administration support 2,640 1920 Indirect costs 8,690 10940 18,458 23084 Total costs Professional Partner Labour Professional Manager Labour 5 15 Number of professionals Hours of billable time per professional 1,250 per year 1,250 per year 75,000 Total compensation (average per professional) $ 165,000 $ Budgeted information for 2022 relating to the two indirect cost categories is as follows: General Support Administration Support Total costs $ 1,375,000 $ 375,000 Cost allocation base Professional labour-hours Partner labour-hours
