Business, 19.12.2019 19:31 dtovar4922

Service industry. job costing, law firm. kidman & associates is a law firm specializing in labor relations and employee-related worlc it employs 30 professionals (5 partners and 25 associates) who work directly with its clients. the averagebudgeted total compensation per professional for 2014 is 597,500. each professional is budgeted to have 1.500 billablehours to clients in 2014. all professionals work for clients to their maximum 1,500 billable hours available. all professionallabor costs are included in a single direct-cost category and are traced to jobs on a per-hour basis. all costs of kidman & associates other than professional labor costs are included in a single indirect»cost pool (legal support) and are allocatedto jobs using professional labor-hours as the allocation base. the budgeted level of indirect costs in 2014 is 52475000. 1.prepare an overview diagram of kidman's job-costing system. 2 compute the 2014 budgeted direct-cost rate per hour ofprofessional labor. 3. compute the 2014 budgeted indirect»cost rate per hour of professional labor. 4. kidman & associatesis considering bidding on two jobs: a. litigation work for richardson, inc., which requires 120 budgeted hours ofprofessional labor b. labor contract work for punch, inc., which requires 160 budgeted hours of professional labor preparea cost estimate for each job.

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