Timlin has two classifications of professional staff: partners and associates. Hanley asks his assistant to examine the relative use of partners and associates on the recent Widnes Coal and St. Helen€™s jobs. The Widnes job used 30 partner- hours and 85 associate- hours. The St. Helen€™s job used 60 partner- hours and 35 associate- hours. Therefore, totals of the two jobs together were 90 partner- hours and 120 associate- hours. Hanley 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 Widnes and St. Helen€™s jobs. Indirect costs in each indirect- cost pool would be allocated on the basis of total hours of that category of professional labor. From the total indirect cost- pool of $ 6,300, $ 3,600 is attributable to the activities of partners, and $ 2,700 is attributable to the activities of associates.
The rates per category of professional labor are as follows.

Required
1. Compute the costs of the Widnes and St. Helen€™s cases using Timlin€™s further refined system, with multiple direct- cost categories and multiple indirect- cost pools.
2. For what decisions might Timlin Associates find it more useful to use this job- costing approach rather than the approaches in Problem 6- 24 or 6-25?

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Category of Professional Labor Partner Associate Direct Cost per Hour $115.00 Indirect Cost per Hour $3,600 90 hours $40.00 $2,700 120 hours $22.50 59.00