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Job costing with multiple direct$-$cost categories, single indirect$-$cost pool, law firm $($continuation of $5-31).$ Rachel Hamilton, the managing partner of Timlin Associates, asks her assistant to collect details on those costs included in the $$625,000$ indirect$-$cost pool that can be traced to each individual job. After analysis, Timlin is able to reclassify $$450,000$ of the $$625,000$ as direct costs:$$Other Direct Costs$$Research support labor Computer time$$Travel and allowances Telephones$/$faxes$$Photocopying Total$$Lopez Enterprises $$41,0004,00014,0004,5006,500$$$70,000$Clinical Inc. $$232,50031,00081,00021,00014,500$$$380,000$ Required$$Hamilton decides to calculate the costs of each job as if Timlin had used six direct$-$cost pools and a single indirect$-$cost pool. The single indirect$-$cost pool would have $$175,000$ of costs and would be allocated to each case using the professional labor$-$hours base. $1.$ Calculate the revised indirect$-$cost allocation rate per professional labor$-$hour for Timlin Associates when total indirect costs are $$175,000.2.$ Compute the costs of the Lopez Enterprises and Clinical Inc. jobs if Timlin Associates had used its re$-$fined costing system with multiple direct$-$cost categories and one indirect$-$cost pool.$3.$ Compare the costs of Lopez Enterprises and Clinical Inc. jobs in requirement $2$ with those calculated using the simple costing system. Comment on the results.

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