Question list Question 1 Data table K Keaton & Associates is a law firm specializing in labor relations and employee-related work. It employs 25 professionals (5 partners and 20 associates) who work directly with its clients. Previously the firm accounted for all professional labor cost in a single direct-cost account and all other costs in a single indirect-cost pool. (Click the icon to view the cost information and rates under the previous method.) Data table Keaton has just completed a review of its job-costing system. (Click the icon to view the job-costing review information.) Budgeted information for 2020 related to the two direct-cost categories is as follows: (Click the icon to view the budgeted information.) Read the requirements. The average budgeted total compensation per professional for 2020 is $104,000. Each professional is budgeted to have 1,600 billable hours to clients in 2020. All professionals work for clients to their maximum 1,600 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 Keaton & 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 $2,200,000. The cost estimates for the Richardson, Inc. job, which requires 120 budgeted hours of professional labor and for the Punch, Inc. job, which requires 180 budgeted hours of professional labor are as follows: Number of professionals Hours of billable time per professional Total compensation (average per professional) Professional Partner Labor Professional Associate Labor 5 20 1,600 per year 1,600 per year 200,000 80,000 Budgeted information for 2020 relating to the two indirect-cost categories is as follows: Richardson Punch Direct-costs Indirect-costs 7,800 $ 6,600 11,700 9,900 14,400 $ 21,600 Total costs Total costs Cost-allocation base General Support 1,800,000 Secretarial Support $ 400,000 Professional labor-hours Partner labor-hours Print Done