Barrett Associates, a law firm, hires Attorney Theresa Jodoin at an annual salary of $140,000. The law firm expects her to spend 2,000 hours per year performing legal work for clients. Indirect costs are assigned to clients based on attorney billing hours. Barrett attorneys are expected to work a total of 26,000 direct labor hours this year. Before the fiscal year begins, Barrett estimates that the total indirect costs for the upcoming year will be $390,000.
1. What would be the hourly (cost) rate to Barrett Associates of employing Jodoin?
2. If Jodoin works on Client 367 for 21 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?