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Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs...

Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 2020:

Budget          Actual

Indirect costs                                                   $270,000      $300,000

Annual salary of each attorney                             $100,000      $110,000

Annual salary of each paraprofessional                   $ 29,000       $ 30,000

Total professional labor-hours                              50,000 dlh     60,000 dlh

1. What are the actual direct-cost rate and the actual indirect-cost rate, respectively, per professional labor-hour?

2. How much should the client be billed in an actual costing system if 200 professional labor-hours are used?

3. How much should the client be billed in an normal costing system if 200 professional labor-hours are used?

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ekkarill92 answered 1 year ago
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