Winken,Blinken,and Nod Is a Law Firm Specializing in Real Estate

question 26

Essay

Winken,Blinken,and Nod is a law firm specializing in real estate litigation.In addition to the three partners,the firm employs nine associates who work directly with clients.The average budgeted compensation for the twelve professionals is $240,000.Each lawyer is budgeted at 1,500 billable hours per year.All professional labor costs are included in a single direct cost pool and are traced to jobs on a per-hour basis.All non-professional labor costs are included in a single overhead cost pool and are allocated to jobs using professional labor hours as the allocation base.Budgeted overhead costs total $1,800,000.The firm is considering bidding on some work with a local university.The job is expected to require 100 hours of professional labor.
Required:
1)Compute the budgeted direct cost rate per hour of professional labor.
2)Compute the budgeted (that is,predetermined)overhead cost rate per hour of professional labor.
3)Compute the budgeted cost for the university job.

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Definitions:

Pollution Levels

The concentration of harmful substances in the environment, indicating the degree of pollution and potential risks to health and ecosystems.

Coal-Burning Facilities

Industrial plants where coal is used as the primary fuel to generate electricity or heat through combustion.

Cap-and-Trade

An environmental policy tool that sets a limit (cap) on emissions and allows entities to buy and sell allowances (trade) for emitting pollutants, aiming to reduce overall pollution in a cost-effective manner.

Gaseous Fuel

Fuel in a gaseous state used for heating, cooking, or powering vehicles, such as natural gas or propane.