Francis and Hartley 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 2018:

How much should the client be billed in an actual costing system if 220 professional labor-hours are used?

Question

Francis and Hartley 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 2018:

How much should the client be billed in an actual costing system if 220 professional labor-hours are used?

Quizplus · Accepted Answer

[($110,000 × 12) + ($30,000 × 10)] / 60,000 × 220 = 	$5,940
+ $300,000 / 60,000 × 220 	= $1,100
= 7,040

Francis and Hartley Law Office Employs 12 Full-Time Attorneys and 10