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Ronald and McDonald Law Office employs 12 full-time lawyers and 10 paraprofessionals. Direct and indirect costs are applied on a professional labour-hour basis that includes
Ronald and McDonald Law Office employs 12 full-time lawyers and 10 paraprofessionals. Direct and indirect costs are applied on a professional labour-hour basis that includes both lawyer and paraprofessional hours. Following is information for 2019:
Budget | Actual | |
Indirect costs | $270,000 | $300,000 |
Annual salary of each lawyer | $100,000 | $110,000 |
Annual salary of each paraprofessional | $ 29,000 | $ 30,000 |
Total professional labour-hours | 50,000 dlh | 60,000 dlh |
How much should the client be billed in an actual costing system if 180 professional labour-hours are used?
$7,480 | ||
$6,960 | ||
$5,760 | ||
$6,400 |
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