I need assistance calculating cost pool and cost driver rate. If needed and can provide the full assignment

Milestone 2 - Steps 4 - 6 The ABC cost analysis is worth 25 points

Step 4:Satisfied that your traditional job-order costing analysis and allocation are correct, you apply activity-based costing to determine the cost associated with the same five clients for the month of January.

You want to show the firm how activity-based costing will lead to a more precise allocation of costs.Further, one goal is to demonstrate to the partners, that having access to reporting with more precise allocation of costs will lead to more effective decisions to improve profitability. In this step, you will prepare an activity-based cost analysis associated with clients for the month of January. To accomplish this task, you have identified six cost pools (Exhibit 2 ABC Cost Pools) and use the information provided by the law firm (Exhibit 3 ABC Cost Drivers) to review the cost drivers. For each cost pool.

You were informed that partners are paid $500 an hour and paralegals are paid $40 per hour. The firm also tracks travel expenses that are directly associated with a client.This information is provided in the EXCEL worksheet. In addition, library and research costs can be traced directly to each client. The firm's accounting department provided you with an estimate of the activity expected for each of the three cost pools for the year.

Cost pool

Estimated total hours

Estimated productive (billable) hours

Library and Research Support Staff Hours

5,000

3,600

OFFICE Staff Hours

5,000

4,000

Paraprofessional Hours

20,000

15,000

The indirect costs will be assigned to the all cost pools.

Thus, there are six cost pools as shown in Exhibit 3 of this case.

The Library and Research Support Cost Pool expenses will be allocated based on library and research staff labor hour, the Telephone and Photocopying Cost Pool expenses will be allocated on the basis of general staff hour

General office overhead is allocated to the cost pools of square feet associated with each activity.

Office salaries are allocated to Travel, Telephone and Photocopying based on time spent by the office staff.

Both office salaries and overhead need to be allocated to the relevant cost pools.

ALLOCATED EXPENSES - OFFICE SALARIES, OTHER OFFICE EXPENSE AND OVERHEAD

For office salaries and other office expense , the time spent on the 3 cost pools

associated with office salaries is as follows

Travel

10%

Telephone

40%

Photocopying

50%

For overhead costs, the square feet associated with the 6 cost pools is as follows;

Professional staff

1000

Paralegal staff

500

Travel

100

Library and Research Staff

150

Telephone

100

Photocopying

150

Use Exhibit 3 "Activity"- Calculate the cost driver rates for the 6 cost pools. You should determine a cost driver rate for each of the cost pools.

When determining the cost driver rates consider whether to use the estimated total hours associated with the cost pools or only the productive (chargeable) hours. Also consider the impact of allocated costs to each cost pool. However, for Travel, use dollars as the base.

Develop the costs associated with each client when ABC cost allocation is used. Use Exhibit 4 Traditional vs. ABC to calculate the costs associated with each client using the ABC cost allocation method. Then show the profitability by client using the ABC cost allocation method