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Lincoln & Associates is a law firm spbor relations and employee-related work. It employs 25 professionals (5 partnersand 20 associates) who work directly with its clients.Lincoln has just comd a review of its job-costing system.Previously the firm accounted for all professionI labor cost in a single direct-cost account and all other costs in a single indirect-cost pool.i (Click the icon to view the job-costing review information.)(Click the icon to view the cost information and rates under the previous method.)Budgeted information for 2020 related to the two direct-cost categories is as follows:If(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 hourPartnerper hourAssoc.per hourRequirement 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.Budgeted indirect-cost rate per hourGeneralper hourSecretarialper hourRequirement 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.Direct-costsProfessional partnersProfessional associatesDirect-costsIndirect-costsGeneral supportSecretarial supportIndirect-costsTotal costsRequirement 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 isthan the firm's previous method. The two jobsThe Richardson job has a relatively higher use ofand therefore the allocation method used in requirement 3the cost of the job when compared to the previous method.Requirement 5. Would you recommend Lincoln & Associates use the job-costing system in the previous method or the job-costing system in this problem? Explain.I would recommend that Lincoln & Associates use the job costing systemwith two direct- and two indirect- cost categories. The job costing systemV more accurately represents the costs incurred on different jobs and therefore helps managers make better decisions. ates under the previous method.)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:Richardson, Inc.Punch, Inc.Professional partners44 hours27 hoursProfessional associates66 hours108 hourscost rates for (a) professional partners and (b) professional associates.4. Comment on the results in requirement 3. Why are the job costs different from those computed using the firm'sprevious method?its to compute both rates. (Abbreviations used: Assoc. = Associate.)5. Would you recommend Lincoln & Associates use the job-costing system in the previous method orthe job-costing system in this problem? Explain.Budgeted direct-cost rate per hourPrintDoneData tableXThe average budgeted total compensation per professional for 2020 is $117,000. Each professionalData tableis budgeted to have 1.800 billable hours to clients in 2020. All professionals work for clients to theirmaximum 1,800 billable hours available. All professional labor costs are included in asingle 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 (legalProfessional Partner LaborProfessional Associate Laborsupport) and are allocated to jobs using professional labor-hours as the allocation base. TheNumber of professionals520budgeted level of indirect costs in 2020 is $2,385,000.Hours of billable time perThe cost estimates for the Richardson, Inc. job, which requires 110 budgeted hours of professionalprofessional1,800 per year1,800 per yearlabor and for the Punch, Inc. job, which requires 135 budgeted hours of professional labor areTotal compensation (average peras follows:professional)S243,00080,000RichardsonPunchBudgeted information for 2020relating to the two indirect-cost categories is as follows:Direct-costsS7.150 $8,775General SupportSecretarial Support5.8307,155Indirect-costsTotal costs1,980,000405,000Total costs12.980 $15,930Cost-allocation baseProfessional labor-hoursPartner labor-hoursPrintDonePrintDone