Q3: Keating & Associates is a law firm specializing in labor relations employee-related work. Keating & Associates received feedback from Punch, Inc., that its bid for the labor contract work was too high. This feedback prompted Keating to review its work activities and how they are reflected in its job-costing system. The review included the 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. Budgeted information for 2016 related to two direct cost categories is as follows: Professional Associate Lab Professional Partner Labor Number Of Professionals 5 20 Hours of Billable time Per 1,600 per year 1,600 per year professional Total Compensation (average $200000 $80000 per professionals) Budgeted information for 2016 relating to two indirect cost categories is: General Support Secretarial Suppor Total Cost Cost Allocation Base Required: $1,800,000 $400,000 Professional Labor Hour Partner Labor Hou a. Compute the 2016 budgeted direct cost rates for (1). Professional partners, and (2). Professional associates. b. Compute the 2016 budgeted indirect-cost rates for (1). General support, and (2). Secretarial support. c. Compute the budgeted job costs for the Richardson and Punch jobs, given the following information: Richardson, Inc. Professional Partner 60 hours Professional Associate 40 hours Punch, .Inc 30 hours 120 hours