Lincoln & Associates is a law firm specializing in labor relations and employee-related work. It employs...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Lincoln & Associates is a law firm specializing in labor relations and employee-related work. It employs 25 professionals (5 partners and 20 associates) who work directly with its clients. Previously the firm accounted for all professional labor cost in a single direct-cost account and all other costs in a single indirect-cost pool. (Click the icon to view the cost information and rates under the previous method.) Lincoln has just completed a review of its job-costing system. (Click the icon to view the job-costing review information.) Budgeted information for 2020related to the two direct-cost categories is as follows: (Click the icon to view the budgeted information.) Read the requirements. Requirement 1. Compute the 2020 budgeted direct-cost rates for (a) professional partners and (b) professional associates. Begin by selecting the formula, then enter the amounts to compute both rates. (Abbreviations used: Assoc. = Associate.) Budgeted direct- cost rate per hour Partner Assoc. + per hour = per hour The average budgeted total compensation per professional for 2020 is $104,000. Each professional is budgeted to have 1,600 billable hours to clients in 2020. All professionals work for clients to their maximum 1,600 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 Lincoln & 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 $2,200,000. The cost estimates for the Richardson, Inc. job, which requires 80 budgeted hours of professional labor and for the Punch, Inc. job, which requires 140 budgeted hours of professional labor are Number of professionals Hours of billable time per professional Total compensation (average per professional) Professional Partner Labor Professional Associate Labor 20 1,600 per year 1,600 per year 200,000 $ 80,000 Budgeted information for 2020relating to the two indirect-cost categories is as follows: as follows: Richardson Punch Direct-costs $ 5,200 $ Indirect-costs 4,400 9,100 7,700 $ 9,600 $ 16,800 Total costs General Support Secretarial Support Total costs $ 1,800,000 $ 400,000 Cost-allocation base Professional labor-hours Partner labor-hours Lincoln & Associates is a law firm specializing in labor relations and employee-related work. It employs 25 professionals (5 partners and 20 associates) who work directly with its clients. Previously the firm accounted for all professional labor cost in a single direct-cost account and all other costs in a single indirect-cost pool. (Click the icon to view the cost information and rates under the previous method.) Lincoln has just completed a review of its job-costing system. (Click the icon to view the job-costing review information.) Budgeted information for 2020related to the two direct-cost categories is as follows: (Click the icon to view the budgeted information.) Read the requirements. Requirement 1. Compute the 2020 budgeted direct-cost rates for (a) professional partners and (b) professional associates. Begin by selecting the formula, then enter the amounts to compute both rates. (Abbreviations used: Assoc. = Associate.) Budgeted direct- cost rate per hour Partner Assoc. + per hour = per hour The average budgeted total compensation per professional for 2020 is $104,000. Each professional is budgeted to have 1,600 billable hours to clients in 2020. All professionals work for clients to their maximum 1,600 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 Lincoln & 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 $2,200,000. The cost estimates for the Richardson, Inc. job, which requires 80 budgeted hours of professional labor and for the Punch, Inc. job, which requires 140 budgeted hours of professional labor are Number of professionals Hours of billable time per professional Total compensation (average per professional) Professional Partner Labor Professional Associate Labor 20 1,600 per year 1,600 per year 200,000 $ 80,000 Budgeted information for 2020relating to the two indirect-cost categories is as follows: as follows: Richardson Punch Direct-costs $ 5,200 $ Indirect-costs 4,400 9,100 7,700 $ 9,600 $ 16,800 Total costs General Support Secretarial Support Total costs $ 1,800,000 $ 400,000 Cost-allocation base Professional labor-hours Partner labor-hours
Expert Answer:
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Posted Date:
Students also viewed these accounting questions
-
1. Prove the put-call parity: C(T, K) P(T, K) = St Bt(T)K, where St is the price of a stock at time t, C(T,K) and P(T, K) are the prices of European call and put options on the stock at time t with...
-
A company purchased $11,600 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $1300, was added to the invoice amount. On June 20, it returned $2080 of...
-
Suppose, in the New Monetarist model, that there is deficient financial liquidity. If the fiscal authority were to engineer a tax cut, financed by an increase in the quantity of government debt, with...
-
Why is the brilliance of an artificial diamond made of cubic zirconium (n = 1.9) distinctly inferior to the real thing (n = 2.4) even if the two are cut exactly the same way? How would an artificial...
-
How did Crocs? new systems improve operations and management decision-making?
-
Following is a TI-84 Plus display showing a 95% confidence interval for 1. a. What is the slope of the least-squares regression line? b. How many degrees of freedom are there? c. How many points are...
-
Stone Corporation is a manufacturing company that makes small electric motors it sells for $45 per unit. The variable costs of production are $25 per motor, and annual fixed costs of production are...
-
On August 7 , Welllington Co . paid $ 3 , 1 6 0 to install a hydraulic lift and $ 3 1 for an air filter for one of its delivery trucks. Question Content Area Journalize the entry for the new lift. If...
-
Record the operations of a commercial company, through the perpetual inventory method, with the purpose of presenting timely financial information. Record the operation of accounting operations,...
-
Victor Finick likes to have the same amount of x as he has of y.The utility function of it is U(x, y) = min {2x y, 2y x}. to.Draw Victor's indifference curve that passes through the basket (0, 0) and...
-
Owen owned a small isolated tract of land called Green Acres near a beautiful mountain lake that was accessible only during the summer months. In July 2000, Owen gave Adler oral permission to camp on...
-
We will be using this movie Intolerable Cruelty, Dir. Joel Coen and Ethan Coen, Universal Studios Home Entertainment, 2004. DVD. Several questions will require you to use the TDRPC as your guide. Do...
-
A "teeter-totter" (or "see-saw" if you prefer) has a 50 lb childsitting at one end, 10 ft. from the center pivot point (fulcrum).How far from the center point should a 125 lb. adult sit in orderto...
-
We suggest you invest in a 3-year progressive rate investment certificate. The interest rate attached to it (compounded annually) increases each year. The interest rates offered are as follows, for...
-
occurs if a disgruntled employee convinces another to steal from the company. A) The control environment B) Collusion A control activity D) Monitoring C)
-
A researcher reports a significant two-way between-subjects ANOVA, F(3, 40) = 2.96. State the decision to retain or reject the null hypothesis for this test.
-
Bracelet Delights is a new company that manufactures custom jewelry. Bracelet Delights currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of...
-
The Incredible Donut owns and operates six doughnut outlets in and around Kansas City. You are given the following corporate budget data for next year: Revenues .......... $10,400,000 Fixed costs...
-
What problems might arise in estimating the degree of completion of semiconductor chips in a semiconductor plant?
-
For the idealized class-B output stage in Figure 8.18 in the text, show that the maximum theoretical conversion efficiency for a symmetrical squarewave input signal is 100 percent. <00 B V+ A Figure...
-
Consider an idealized class-B output stage shown in Figure P8.22. The output stage is to deliver \(50 \mathrm{~W}\) of average power to a \(24 \Omega\) load for a symmetrical input sine wave. Assume...
-
Consider an idealized class-B output stage shown in Figure P8.22. (The effective turn-on voltages of devices A and B are zero, and the effective "saturation" voltages of \(v_{A}\) and \(v_{B}\) are...
Study smarter with the SolutionInn App