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Question list , K x / s Question 1 Question 2 x / s Question 3 Kahn & Associates is a law firm specializing in

Question list ,K
x/s Question 1
Question 2
x/s Question 3
Kahn & Associates is a law firm specializing in labor relations and employee-related work. It
employs 30 professionals (5 partners and 25 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.)
Kahn 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.)
Requirement 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.
Data table
The average budgeted total compensation per professional for 2020 is $97,500. Each professional is
budgeted to have 1,500 billable hours to clients in 2020. All professionals work for clients to their
maximum 1,500 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 Kahn & 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 $2,475,000.
The cost estimates for the Richardson, Inc. job, which requires 90 budgeted hours of professional
labor and for the Punch, Inc. job, which requires 140 budgeted hours of professional labor are
as follows:
Data table
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