Posted: May 11th, 2022

Attorney Maria Conroe uses a job order costing system to collect costs of client engagements

Attorney Maria Conroe uses a job order costing system to collect costs of client engagements. Conroe is at the moment engaged on a case for Stacie Olivgra. Through the first three months of 2010, Conroe logged 95 hours on the Olivgra case.As well as to direct hours spent by Conroe, her workplace Helpant has labored 35 hours typing and copying 1,450 pages of paperwork associated to the Olivgra case. Conroe’s Helpant works 160 hours per thirty days and is paid a wage of $four,800 per thirty days. The common price per copy is $zero.06 for paper, toner, and machine rental. Phone and fax expenses for long-distance calls on the case totaled $145. Final, Conroe has estimated that complete workplace overhead for lease, utilities, parking, and so forth quantity to $9,600 per thirty days and that, throughout a regular month, the workplace is open each hour that the Helpant is at work. Overhead expenses are allotted to shoppers based mostly on the quantity of hours of Helpant’s time.a. Conroe wishes to set the billing charge in order that she earns, at a minimal, $190 per hour, and covers all direct and allotted oblique costs associated to a case. What minimal cost per hour (rounded to the closest $10) ought to Conroe cost Olivgra? (Trace: Make sure to embrace workplace overhead.) What can be the entire billing to Olivgra?b. All of the hours that Conroe spends on the workplace aren’t essentially billable hours. As well as Conroe didn’t think about sure different bills reminiscent of license charges, nation membership dues, car costs, and different miscellaneous bills when she decided the quantity of overhead per thirty days. Subsequently, Conroe is contemplating billing shoppers for direct costs plus allotted oblique costs plus a 40 % margin to cowl nonbillable time in addition to different costs. What’s going to Conroe cost Olivgra in complete for the time spent on her case?c. Which billing methodology is extra seemingly to be accepted by shoppers and why?

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