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Sneider Company is a law firm specializing in corporate and employee issues. It employs 30 specialized employees (5 senior and 25 junior). The average
Sneider Company is a law firm specializing in corporate and employee issues. It employs 30 specialized employees (5 senior and 25 junior). The average budgeted total compensation per employee for 2021 is 112,000. Each employee is budgeted to have 1,600 billable hours to clients in 2021. All employees work for clients to their maximum 1,600 billable hours available. The company uses a job-costing system according to which a single direct-cost category is used to gather and trace costs to jobs on a per-hour basis. All indirect (i.e., non-labour) costs are pooled in a single indirect-cost department (legal support) and are allocated to jobs using employee labour-hours as the allocation base. The budgeted level of indirect costs in 2021 is 2,500,000. e) Sneider Company is considering bidding on two jobs: i. Litigation work for Paragon, Inc., which requires 130 budgeted hours of employee labor ii. Labor work for a case of a contract-violation for Human, Inc., which requires 150 budgeted hours of employee labor. Estimate the cost for each job.
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