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Casey Associates is a recently lormed lanw partnerahip. Eileny Hacily. the managing partner of Casey Associatos, has juat thiahed a tense phone cal ath Martin offah, president of Widnes Coal. uses a simple costing system with a single drect-cont calegory (protessional labout-hours) and a single indrect coat pool (general suppori) indirect costs are albcated to cases on the tass of prolestional labour-houn per case. The job files show the following Professional labour costs at Casey Associates are 85 an hour. Indirect costs are alocaled to cases at 6110 an hour. Total indirect cestr in the most recent period were t24.750. Requirements 1. Why is it important for Casey Associates to understand the costs assoclated with individual jobs? 2. Compute the costs of the Widnes Cool and St. Holen's Glass jobs using Casey's simple cosiling system. Requirement 1. Why is it importam for Casey Associates to understand the costs associated with indivdual jobs? decibions at Casey Associates are heavily inffuenced by reported cost numbers. Suppose Casey is bidding against another frm for a client weth a job aimilar to that of Widnes Coak. If the cesting system the costs of these jobs. Casey may bid too high and fal to land the cliont. If the costing syvem dient, and then lose money in handing the case. Requirement 2. Compute the coste of the Widnes Caal and St. Helen's Glass jobs using Casey's simple conting system. Bhenin bu Antarminina the formula uted to calculate the dirnet conts for each ioh

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