5-30 Job costing with multiple direct-cost categories, single indirect-cost pool, law firm (continuation of 5-29). (LO 4) Hanley asks his assistant to collect details on those costs included in the $21,000 indirect-cost pool that can be traced to each individual case. After further analysis, Marc and Associates is able to reclassify $14,000 of the $21,000 as direct costs: Other Direct Costs Widnes Coal St. Helen's Glass Research support labour $1,600 $3,400 Computer time 500 1,300 Travel and allowances 600 4,400 Telephones/faxes 200 1,000 Photocopying 250 750 Total $3,150 $10,850 Hanley decides to calculate the costs of each case had Marc and Associates used six direct-cost pools and a single indirect-cost pool. The single indirect-cost pool would have $7,000 of costs and would be allocated to each case using the professional labour-hours base. Required 1. What is the revised indirect cost-allocation rate per professional labour hour for Marc and Associates when total indirect costs are $7,000? 2. Compute the costs of the Widnes and St. Helen's cases if Marc and Associates had used its refined costing system with multiple direct-cost categories and one indirect-cost pool. 3. Compare the costs of the Widnes and St. Helen's cases in requirement 2 with those in requirement 2 of Problem 5-29. Comment on the results. Check Figure: 1. Revised indirect cost: allocation rate, $35 per professional labour-hour