Smith and Baker Legal Services employs 6 full-time attorneys and 10 paraprofessionals. Budgeted salaries are $420,000 for each attorney and $140,000 for each paraprofessional. Budgeted indirect costs (e. g., rent, secretarial support, copying, etc.) are $980,000. The company traces the cost of attorney and paraprofessional time to each client and uses the total to assign indirect costs. What amount of indirect cost would be assigned if services to a client required $30,000 of attorney cost and $25,000 of paraprofessional cost

Indirect cost for client is $13,750

Explanation:

Budgeted salaries = ($420,000 * 6) + ($140,000 * 10)

Budgeted salaries =  $2,520,000 + $1,400,000

Budgeted salaries = $3,920,000

Budgeted indirect costs given = $980,000

Cost for client = $30,000 + $25,000

Cost for client =$55,000

Indirect cost for client is:

= $980,000 *  ($55,000 / $3,920,000)

= $980,000 * 0.014031

= $13,750.38

= $13,750

a) both were commissioned explorers

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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