In the Barnett & Associates example in the appendix to this chapter, suppose Mirza’s annual salary is $110,000 rather than $100,000. Also suppose the Barnett’s lawyers are expected to work a total of 12,000 direct labour hours rather than 10,000 direct labour hours.
1. What would be the hourly (cost) rate to Barnett Associates of employing Mirza?
2. What direct labour 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?