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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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