their maximum 1,500 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 profes- sional 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 2017 is $2,475,000. 1. Prepare an overview diagram of Kidman's job-costing system. 2. Compute the 2017 budgeted direct-cost rate per hour of professional labor. 3. Compute the 2017 budgeted indirect-cost rate per hour of professional labor. 4 Kidman &Associates is considering bidding on two jobs: a. Litigation work for Richardson, Ic., which requires 120 budgeted hours of professional labor b. Labor contract work for Punch, Ic., which requires 160 budgeted hours of professional labor. Prepare a cost estimate for each job.

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Chapter1: Financial Statements And Business Decisions
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I need help on the last question, which is question 4a. 4b.

ASSIGNMEN
their maximum 1,500 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 profes-
sional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jabs using
professional labor-hours as the allocation base. The budgeted level of indirect costs in 2017 is $2,475,000.
1. Prepare an overview diagram of Kidman's job-costing system.
2. Compute the 2017 budgeted direct-cost rate per hour of professional labor.
3. Compute the 2017 budgeted indirect-cost rate per hour of professional labor.
4. Kidman & Associates is considering bidding on two jobs:
a. Litigation work for Richardson, Inc., which requires 120 budgeted hours of professional labor
b. Labor contract work for Punch, Inc., which requires 160 budgeted hours of professional labor.
Prepare a cost estimate for each job.
Jou firm Iocontinua-
Transcribed Image Text:ASSIGNMEN their maximum 1,500 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 profes- sional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jabs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2017 is $2,475,000. 1. Prepare an overview diagram of Kidman's job-costing system. 2. Compute the 2017 budgeted direct-cost rate per hour of professional labor. 3. Compute the 2017 budgeted indirect-cost rate per hour of professional labor. 4. Kidman & Associates is considering bidding on two jobs: a. Litigation work for Richardson, Inc., which requires 120 budgeted hours of professional labor b. Labor contract work for Punch, Inc., which requires 160 budgeted hours of professional labor. Prepare a cost estimate for each job. Jou firm Iocontinua-
Compute the total manufacturing overhead cost allocated tô
4. Assuming that Job 431 consisted of 400 units of product, what is the cost per unit?
5. Amounts at the end of 2017 are as follows:
Machining Department
$13,250,000
Finishing Department
$8,400,000
Manufacturing overhead incurred
Direct manufacturing labor costs
$ 1,000,000
$4,300,000
Machine-hours
250,000
30,000
Compute the under- or overallocated manufacturing overhead for each department and for the Dover
plant as a whole.
6. Why might Solomon use two different manufacturing overhead cost pools in its job-costing system?
4-37 Service industry, job costing, law firm. Kidman & Associates is a law firm specializing in labor
relations and employee-related work. It employs 30 professionals (5 partners and 25 associates) who work
directly with its clients. The average budgeted total compensation per professional for 2017 is $97,500. Each
professional is budgeted to have 1,500 billable hours to clients in 2017. All professionals work for clients to
Transcribed Image Text:Compute the total manufacturing overhead cost allocated tô 4. Assuming that Job 431 consisted of 400 units of product, what is the cost per unit? 5. Amounts at the end of 2017 are as follows: Machining Department $13,250,000 Finishing Department $8,400,000 Manufacturing overhead incurred Direct manufacturing labor costs $ 1,000,000 $4,300,000 Machine-hours 250,000 30,000 Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole. 6. Why might Solomon use two different manufacturing overhead cost pools in its job-costing system? 4-37 Service industry, job costing, law firm. Kidman & Associates is a law firm specializing in labor relations and employee-related work. It employs 30 professionals (5 partners and 25 associates) who work directly with its clients. The average budgeted total compensation per professional for 2017 is $97,500. Each professional is budgeted to have 1,500 billable hours to clients in 2017. All professionals work for clients to
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