Silver Law Firm provides litigation and mediation services. The company reports the following overhead cost data for
Question:
Silver Law Firm provides litigation and mediation services. The company reports the following overhead cost data for the year. It worked on 70 litigation cases and 80 mediation cases during this period.
Activity usage for each service follows.
Required
1. Compute an activity rate for each activity using activity-based costing.
2. Compute overhead cost per unit (case) for both litigation and mediation using activity-based costing.
Transcribed Image Text:
Activity Clerical support... Facility services... Client consultations... Budgeted Cost $63,000 18,600 90,000 Budgeted Activity Usage 360 documents 2,400 billable hours 36 court dates
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