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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:

Protodeclarative

A form of pointing or showing by infants, used to direct the attention of others to objects or events, serving a declarative communicative function.

Conversational

Relating to or characteristic of informal spoken exchange or dialogue.

Referring

The act of directing someone to a different source or authority for information, help, or action.

Pragmatic Use

The practical use of language in context to achieve communication goals, considering factors such as conversational implicature and context.

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