Wright Associates is a recently formed law partnership. Wright Associates operates at capacity and uses a cost-based approach to pricing (billing) each job. Wright currently uses a simple costing system. (Click the icon to view the data using the simple costing system.) Claire Higgins, the managing partner of Wright Associates, decided to try and further refine the costing system (Click the icon to view the data. (Click the icon to view additional information.) Read the requirements Partner professional labor Associate professional labor Research support labor Computer time Travel and allowances Telephones/faxes Photocopying Total direct costs Indirect costs to be allocated: Indirect costs for partners Indirect costs for associates Total indirect costs Total costs of job Requirement 2. For what decisions might Wright Associates find it more useful to use this job-costing approach rather than the approaches of a simple costing syster or a refined costing syler with multiple direct-cost categories and one incinecl- pool? A. Better managers on client budgets since Wright Assodates can now cut out the modle-man work product and efficiently do the work themselves. B. Better cost control based on individual cost areas of direct and indirect cost categories which allows Wright Associates to effectively manage the categories. c. Better client relationships since it will provide a better "road map" for clients to understand how costs are accumulated Wright Associates D. Better employee work ethic on case projects because Wright Associates will be able to staff employees in assignments they prefer to work on. E. Better decisions are made on pricing and product since it will reduce the likelihood of Wright Associates losing cases on which it would have made money. Choose from any list or enter any number in the input fields and then continue to the next question, Wright Associates is a recently formed law partnership. Wright Associates operates at capacity and uses a cost-based approach to pricing (billing) each job. Wright currently uses a simple costing system. (Click the icon to view the data using the simple costing system.) Claire Higgins, the managing partner of Wright Associates, decided to try and further refine the costing system (Click the icon to view the data. (Click the icon to view additional information.) Read the requirements Requirement 1. Compute the costs of the Jabar Enterprises and Clinical Inc.'s cases using Wright's further refined system, with multiple direct cost categories and multiple indirect cost pools. Begin by determining the formulas you will use to calculate the direct partner cost of the job and the direct associate cost of the job. Data Table = Partner direct costs of Job = Associate direct costs of job Now determine the formulas you will use to calculate the indirect costs for partners and the indirect costs for associates = Partner indirect costs of job Associate indirect costs of job Higgins asks her assistant to collect details on those costs included in the S525,000 indirect-cost pool that can be traced to each individual job. After analysis, Wright is able to reclassify S300.000 of the $525.000 as direct costs: Now compute the total costs of each job using the multiple direct-cost categories and multiple indirect-cost pools. (Round your answers to the neare Jabar Clinical Enterprises Inc. Direct costs: Partner professional labor Other Direct Costs Jabar Enterprises Clinical Inc. Research support labor $ 34,000 5 97,000 Computer time 6,000 28,000 Travel and allowances 11,000 80,000 Telephonesiaxes 2,000 21,000 Photocopying 6,500 14,500 59,500 5 240,500 Tolal Higgins decides to calculate the costs of each job as if Wright had used six direct cost-pools and a single Indirect-oost pool. The single Indirect-cost pool would have $225,000 of costs and would be allocated to each case using the professional labor-hours buse. Associate professional labor Research support labor Computer time Travel and allowances Telephones/faxes Photocopying Total direct costs Print Done Choose from any list or enter any number in the input fields and then continue to the next question. Wright Associates is a recently formed law partnership. Wright Associates operates at capacity and uses a cost based approach to pricing (billing) each job. Wright currently uses a simple costing system. (Click the icon to view the data using the simple costing system.) Claire Higgins, the managing partner of Wright Associates, decided to try and further refine the costing system. (Click the icon to view the data.) Click the icon to view additional information.) Read the recuirements. Requirement 1. Compute the costs of the Jabar Enterprises and Clinical Inc.'s cases using Wright's further refined syster, with multiple direct cost categories and multiple indirect-cost pools. Begin by determining the formulas you will use to calculate the direct partner cost of the job and the direct associate cost of th i More Info = Partner direct costs of job x = Associate direct costs of job Now determine the formulas you will use to calculate the indirect costs for partners and the incirect costs for associates. = Partner indirect costs of job = Associate indirect costs of job Now compute the total costs of each job using the multiple direct cost categories and multiple indirect cost pools. (Round you Clinical Wright has two classifications of professional staff: partners and associates. Higgins asks her assistant to examine the relative use of partners and associates on the recent Jabar Enterprises and Clinical Inc. jobs. The Jabar Enterprises job used 900 partner-hours and 2,000 associate-hours. The Clinical Inc. job used 1,600 partner-hours and 500 associate-hours. Therefore, totals of the two jobs together were 2,500 partner-hours and 2,500 associate-hours. Higgins decides to examine how using separate direct-cost rates for partners and associates and using separate indirect-cost pools for partners and associates would have affected the costs of the Jabar Enterprises and Clinical Inc. jobs. Indirect costs in each incirect cost pool would be allocated on the basis of total hours of that category of professional labor. From the total indirect cost-pool of S225.000, S150.000 is attributable to the activities of partners and $75,000 is attributable to the activilies of associates, The rates per category of professional labor are as follows: Direct Cost per Category of Professional Labor Hour Indirect Cost per Hour Partner $ 200 $150,000+ 2,500 hours = $60.00 Jabar Enterprises Inc. Direct costs: Partner professional labor Associate professional labor Associate $ 140 $75,000 + 2,500 hours = 530.00 Research support labor Computer time Travel and allowances Print Done Telephones/faxes Photocopying Total direct costs Choose from any list or enter any number in the input fields and then continue to the next question. Wright Associates is a recently formed law partnership. Wright Associates operates at capacity and uses a cost-based approach to pricing (billing) each job. Wright currently uses a simple costing system. (Click the icon to view the data using the simple costing system.) Claire Higgins, the managing partner of Wright Associates, decided to try and further refine the costing sy B: (Click the icon to view the data) (Click the icon to view additional information.) Read the requirements. Requirement 1. Compute the costs of the Jabar Enterprises and Clinical Inc.'s cases using Wright's further refined system, with multiple direct-cost categories and multiple Indirect-cost pools. Begin by determining the formulas you will use to calculate the direct partner cost of the job and the direct associate cost of the job. x = Partner direct costs of job x Associate direct costs of job Now determine the formulas you will use to calculate the indirect costs for partners and the indirect costs for associates. = Partner indirect costs of job 0 Data Table - X = Associate indirect costs of job Now compute the total costs of each job using the multiple direct-cost categories and multiple indirect-cost pools. (Round Jabar Clinical Enterprises Inc. Currently it uses a simple costing system with a single direct-cost category (professional labor-hours) and a single indirect-cost pool general support). Indirect costs are allocated to cases on the basis of professional labor-hours per case. The job files show the following: Direct costs: Partner professional labor Associate professional labor Research support labor Computer time Travel and allowances Telephones/faxes Jabar Enterprises Clinical Inc. Professional labor 2,900 hours 2,100 hours Professional labor costs at Wright Associates are S 190 an hour. Indirect costs are allocated to cases at $105 an hour. Total indirect costs in the most recent period were $525.000 Print Done Photocopying Total direct costs