Question: Kahn 8 Associates is a kw Eim spocilizing a labor relations and enployee telated work It employs 20 Kann has just contiglolod a covin of

covin of is job-cosing sytem polossonals (5 pariners and 15 associates) who

work drecty with its cheots. Proviounly the tirm accounted for alf protessional

Kahn 8 Associates is a kw Eim spocilizing a labor relations and enployee telated work It employs 20 Kann has just contiglolod a covin of is job-cosing sytem polossonals (5 pariners and 15 associates) who work drecty with its cheots. Proviounly the tirm accounted for alf protessional labor cost in a singto direct cost accourt and all oller costs in a sicgin aditect-cost poos (cick the icon to virw the cost informaton and rates under the prenous method. Aoad the Requirement 1, Compute the 2020 twigeted arect cost rales for (a) Frotesional partines and (b) pecirimonal assocatos Data table 0 related to the Iwo direcl The average budgeted total compensation per professional for 2020 is $97,500. Each professional is budgeted to have 1,250 billable hours to clients in 2020 . All professionals work for clients to their maximum 1,250 billable hours available. 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 Kahn \& Associates other than professional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2020 is $1,750,000 The cost estimates for the Richardson, Inc. job, which requires 120 budgeted hours of professional labor and for the Punch, Inc. job, which requires 150 budgeted hours of professional labor are as follows: Data table Requirements 1. Compute the 2020 budgeted direct-cost rates for (a) professional partners and (b) professional associates 2. Compute the 2020 budgeted indirect-cost rates for (a) general support and (b) secretarial support. 3. Compute the budgeted costs for the Richardson and Punch jobs, given the following information: 4. Comment on the results in requirement 3 . Why are the job costs different from those compited using the firm's previous method? 5. Would you recommend Kahn \& Associates use the job-costing system in the previous method or the job-costing system in this problem? Explain

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