Zucca Associates, a law firm, hires Attorney Odessa Smythe at an annual salary of $ 192,000. The law firm expects her to spend 2,400 hours per year performing legal work for clients. Indirect costs are assigned to clients based on attorney billing hours. Firm ­attorneys are expected to work a total of 28,000 direct labor hours this year. Before the fiscal year begins, Zucca estimates that the total indirect costs for the upcoming year will be $ 840,000.
1. What would be the hourly (cost) rate to Zucca Associates of employing Smythe?
2. If Smythe works on Client 367 for 15 hours, what direct labor cost would be traced to Client 367?
3. What is the indirect cost allocation rate?
4. What indirect costs will be allocated to Client 367?
5. What is the total job cost for Client 367?