(Solved): 5-30 Job costing with multiple direct-cost categories, single indirect-cost p ...

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5-30 Job costing with multiple direct-cost categories, single indirect-cost pool, law firm (continuation of 5-29). (LO 4) Hanley asks his assistant to collect details on those costs included in the \( \$ 21,000 \) indirect-cost pool that can be traced to each individual case. After further analysis, Marc and Associates is able to reclassify \( \$ 14,000 \) of the \( \$ 21,000 \) as direct costs: Hanley decides to calculate the costs of each case had Marc and Associates used six direct-cost pools and a single indirect-cost pool. The single indirectcost pool would have \( \$ 7,000 \) of costs and would be allocated to each case using the professional labour-hours base. Required 1. What is the revised indirect cost-allocation rate per professional labourhour for Marc and Associates when total indirect costs are \( \$ 7,000 \) ? 2. Compute the costs of the Widnes and St. Helen's cases if Marc and Associates had used its refined costing system with multiple direct-cost categories and one indirect-cost pool. 3. Compare the costs of the Widnes and St. Helen's cases in requirement 2 with those in requirement 2 of Problem 5-29. Comment on the results. Check Figure: 1. Revised indirect cost: allocation rate, \( \$ 35 \) per professional labour-hour