instructions:

Please read the problems presented below and respond to all question prompts. Answer the

questions thoroughly and clearly. Make sure to number your responses so that your answers are

clear. Please refer to the rubric for guidance in preparing your assign

ment. Make sure to cite

all sources and include a reference and cover page.

$1.$

Kidman & Associates is a law firm specializing in labor relations and employee

$-$

related

work. It employs $30$ professionals $(5$ partners and $25$ associates$)$ who work directly with

i

ts clients. The average buDgeted total compensation per professional for $2020$ is

$$97,500\mathrm{.}00.$ Each professional is budgeted to have $1,500$ billable hours to clients in $2020.$

All professionals work for clients to their maximum of $1,500$ billable hours availa

ble. All

professional labor costs are included in a single direct

$-$

cost category and are traced to jobs

on a per

$-$

hour basis. All costs of Kidman and Associates other than professional labor

costs are included in a single indirect

$-$

cost pool $($legal support$)$ a

nd are allocated to the job

using professional labor hours as the allocation base. The budgeted level of indirect

costs in $2020$ is $$2,475,000.$

Required:

$1.$

Prepare an overview diagram of Kidman$$s job costing system.

$2.$

Compute the $2020$ budgeted direct

$-$

cost

rate per hour of professional labor.

$3.$

Computer the $2002$ budgeted indirect

$-$

cost rate per hour of professional labor.

$4.$

Kidman & Associates is considering bidding on two jobs:

a$.$

Litigation work for Richardson, Inc., requires $120$ budgeted hours of

professiona

l labor.

b$.$

Labor contract work for Punch, Inc., which requires $160$ budgeted hours of

professional labor. Prepare a cost estimate for each job.