Required (Numbers 4 and 5 only)

4-27 Service industry, job costing, two direct- and two indirect-cost categories, law firm (continuation of 4-26). Kahn 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 labor and professional associate labor) and two indirect-cost categories (general support and secretarial support) would yield more accurate job costs. Budgeted information for 2012 related to the two direct-cost categories is as follows: Budgeted information for 2012 relating to the two indirect-cost categories is as follows: 1. Compute the 2012 budgeted direct-cost rates for (a) professional partners and (b) professional associates. 2. Compute the 2012 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: 4. Comment on the results in requirement 3 . Why are the job costs different from those computed in Problem 4-26? 5. Would you recommend Kahn \& Associates use the job-costing system in Problem 4-26 or the job-costing system in this problem? Explain