Smith and Baker Legal Services employs five full time attorneys
Smith and Baker Legal Services employs five full-time attorneys and nine paraprofessionals. Budgeted salaries are $100,000 for each attorney and $50,000 for each paraprofessional. Budgeted indirect costs (e.g. rent, secretarial support, copying, etc.) are $21 0,000. The company traces the cost of attorney and paraprofessional time to each client and uses the total to assign indirect costs.

What amount of indirect costs would be assigned if services to a client required $25,000 of attorney cost and $20,000 of paraprofessional cost?

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