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The actual direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. following is information for 2018 are $63.60 and $12.40.
Determining the cost object of direct costs is quite simple. Ford Motor Company (F), for instance, produces cars and trucks.
Direct expenses would include the steel and bolts required to produce a vehicle or truck. Electricity for the production facility, however, would be an indirect expense. Despite being able to be connected to the facility, the power expenditure cannot be connected to a single unit directly and is therefore considered indirect.
The two main expenses associated with producing an item or service are direct and indirect costs. While indirect costs are more difficult to identify with a product, direct costs may.
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Francis and Hartley 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 2018: Budget Actual Indirect costs $270,000 $300,000 Annual salary of each attorney $100,000 $110,000 Annual salary of each paraprofessional$29,000 $30,000 Total professional labor-hours 50,000 dlh60,000 dlh How much should the client be billed in an actual costing system if 220 professional labor-hours are used? A.$8,228 B. $7,744 C. $7,040 D. $5,940
