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Question - A law office employs full-time attorneys and five paraprofessionals. For the current year indirect costs were budgeted at $225,000, but actually amounted to $350,000. Direct and indirect costs are applied on a professional labour-hour basis which includes both attorney and paraprofessional hours. Total budgeted labour-hours were 25,000; however, actual labour-hours were 30,000. What is the Indirect cost applied to jobs if the law office uses normal costing?
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