Question: roiann and dennett law office employs 12 fulltime attorneys and...
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 2014:
Indirect costs $270,000 $300,000
Annual salary per attorney $100,000 $110,000
Annual salary per paraprofessional $ 29,000 $ 30,000
Total professional labor-hours 50,000 dlh 60,000 dlh
What would be the total costs in a normal costing system if 200 professional labor-hours are used?