12 a local attorney employs ten full time professionals the budgeted compensation pe 4302562

12) A local attorney employs ten full-time professionals. The budgeted compensation per employee is $75,000. The maximum billable hours for each client are 200. Clients always receive their full amount of time. All professional labour costs are included in a single direct cost category and are traced to jobs on a per-hour basis. Any other costs are included in a single indirect cost pool, allocated according to professional labour-hours. Budgeted indirect costs for the year are $1,000,000 and the firm had 20 clients.

Required:

a.What is the direct labour budgeted cost rate per hour?

b.What is the indirect cost pool budgeted cost rate per hour?

13) A local attorney employs ten full-time professionals. The budgeted compensation per employee is $80,000. The maximum billable hours for each client are 400. Clients always receive their full amount of time. All professional labour costs are included in a single direct cost category and are traced to jobs on a per-hour basis. Any other costs are included in a single indirect cost pool, allocated according to professional labour-hours. Budgeted indirect costs for the year are $400,000 and the firm had 20 clients.

Required:

a.What is the direct labour budgeted cost rate per hour?

b.What is the indirect cost pool budgeted cost rate per hour?

14) A local engineering firm is bidding on a design project for a new client. The total budgeted direct labour costs for the firm are $800,000. The total budgeted indirect costs are $1,200,000. It is estimated that there are 16,000 billable hours in total.

Required:

a.What is the budgeted direct labour cost rate?

b.What is the budgeted indirect cost allocation rate assuming direct labour cost is the cost allocation base?

c.What should be the engineering firm bid on the project if the direct labour hours are estimated at 500 hours?