K Kidman & Associates is a law firm specializing in labor relations and employee-related work. It employs 25 professionals (7 partners and 18 associates) who work directly with its clients. The average budgeted total compensation per professional for 2020 is $110,000. Each professional is budgeted to have 2,000 billable hours to clients in 2020. All professionals work for clients to their maximum 2,000 billable hours available. All professional labor costs are included in a single direct-cost category and are traced to jobs on a per-hour basis. All costs of Kidman & Associates other than professional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2020 is $2,250,000. Read the requirements. CHILD LG anivus aru valvulae IG IGLO. $ Budgeted indirect-costs ACCESS Direct-costs Indirect-costs Total costs Budgeted total direct labor-hours 50,000 = 2,250,000 Requirement 4. Prepare a cost estimate for the Richardson, Inc. job, which requires 120 budgeted hours of professional labor and for the Punch, Inc. job, which requires 170 budgeted hours of professional labor. Richardson = $ Budgeted indirect- cost rate per hour 45 per hour
K Kidman & Associates is a law firm specializing in labor relations and employee-related work. It employs 25 professionals (7 partners and 18 associates) who work directly with its clients. The average budgeted total compensation per professional for 2020 is $110,000. Each professional is budgeted to have 2,000 billable hours to clients in 2020. All professionals work for clients to their maximum 2,000 billable hours available. All professional labor costs are included in a single direct-cost category and are traced to jobs on a per-hour basis. All costs of Kidman & Associates other than professional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2020 is $2,250,000. Read the requirements. CHILD LG anivus aru valvulae IG IGLO. $ Budgeted indirect-costs ACCESS Direct-costs Indirect-costs Total costs Budgeted total direct labor-hours 50,000 = 2,250,000 Requirement 4. Prepare a cost estimate for the Richardson, Inc. job, which requires 120 budgeted hours of professional labor and for the Punch, Inc. job, which requires 170 budgeted hours of professional labor. Richardson = $ Budgeted indirect- cost rate per hour 45 per hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Pls help the requirement 4
Transcribed Image Text:Requirements
1. Identify the components of the overview diagram of Kidman's job-costing system.
Compute the 2020 budgeted direct-cost rate per hour of professional labor.
2.
Compute the 2020 budgeted indirect-cost rate per hour of professional labor.
Kidman & Associates is considering bidding on two jobs:
3.
4.
a. Litigation work for Richardson, Inc., which requires 120 budgeted hours of professional labor.
b. Labor contract work for Punch, Inc., which requires 170 budgeted hours of professional labor.
Prepare a cost estimate for each job.
Transcribed Image Text:K
Kidman & Associates is a law firm specializing in labor relations and employee-related work. It employs 25 professionals (7 partners and 18 associates) who work
directly with its clients. The average budgeted total compensation per professional for 2020 is $110,000. Each professional is budgeted to have 2,000 billable hours to
clients in 2020. All professionals work for clients to their maximum 2,000 billable hours available. All professional labor costs are included in a single direct-cost
category and are traced to jobs on a per-hour basis. All costs of Kidman & Associates other than professional labor costs are included in a single indirect-cost
pool (legal support) and are allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2020 is $2,250,000.
Read the requirements.
Fille Le alivunts allu calculate Lie Tale.
$
Budgeted indirect-costs
2,250,000
Direct-costs
Indirect-costs
Total costs
41
Richardson
..
Budgeted total direct labor-hours
50.000
=
$
EA
Requirement 4. Prepare a cost estimate for the Richardson, Inc. job, which requires 120 budgeted hours of professional labor and for the Punch, Inc. job, which
requires 170 budgeted hours of professional labor.
Budgeted indirect-
cost rate per hour
45 per hour
A
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education