A local attorney employs ten full-time professionals.The budgeted compensation per employee is $80,000.The maximum billable hours for each client are 400.Clients always receive their full amount of time.All professional labour costs are included in a single direct cost category and are traced to jobs on a per-hour basis.Any other costs are included in a single indirect cost pool, allocated according to professional labour-hours.Budgeted indirect costs for the year are $400,000 and the firm had 20 clients.Required:
a.What is the direct labour budgeted cost rate per hour?
b.What is the indirect cost pool budgeted cost rate per hour?

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The Answer of A local attorney employs ten full-time professionals.The budgeted compensation per employee is $80,000.The maximum billable hours for each client are 400.Clients always receive their full amount of time.All professional labour costs are included in a single direct cost category and are traced to jobs on a per-hour basis.Any other costs are included in a single indirect cost pool, allocated according to professional labour-hours.Budgeted indirect costs for the year are $400,000 and the firm had 20 clients.Required:
a.What is the direct labour budgeted cost rate per hour?
b.What is the indirect cost pool budgeted cost rate per hour?

A Local Attorney Employs Ten Full-Time Professionals