Requirement $2.$ Compute the $2020$ budgeted indirect$-$cost rates for $($a$)$ general support and $($b$)$ secretarial support.

Begin by selecting the formula, then enter the amounts to compute both rates.

Requirement $3.$ Compute the budgeted costs for the Richardson and Punch jobs based upon the hours each job is budgeted to use.

Requirements

Compute the $2020$ budgeted direct$-$cost rates for $($a$)$ professional partners and $($b$)$ professional associates.

Compute the $2020$ budgeted indirect$-$cost rates for $($a$)$ general support and $($b$)$ secretarial support.

Compute the budgeted costs for the Richardson and Punch jobs, given the following information:

Comment on the results in requirement $3.$ Why are the job costs different from those computed using the firm's

previous method?

Would you recommend Kahn& Associates use the job$-$costing system in the previous method or the job$-$costing

system in this problem? Explain.

Data table

Data table

The average budgeted total compensation per professional for $2020$ is $$97,500.$ Each professional is

budgeted to have $1,500$ billable hours to clients in $2020.$ All professionals work for clients to their

maximum $1,500$ 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 $$2,475,000.$

The cost estimates for the Richardson, Inc. job, which requires $90$ budgeted hours of professional

labor and for the Punch, Inc. job, which requires $140$ budgeted hours of professional labor are

as follows: