4 6 Cost Description 5 Depreciation used on administrative office equipment Amount $ Depreciation on computer equipment used for legal work 7 Insurance on company president's vehicle 8 Insurance on legal malpractice Janitorial services for administrative offices 10 Janitorial services for lawyers' offices 11 Salaries of administrative office personnel 12 Salaries of legal professionals working on tax matters 13 Supplies used in administrative offices 14 Supplies used for client related work 15 Utilities expense for administrative offices 16 Utilities expense for legal practice $ 17 Total costs incurred 18 a. Cost Classification 800 2,000 2,700 9,800 5,300 2,600 10,000 44,000 1,000 700 1,200 900 81,000 27 a. Fill out the chart above classifying each of the costs as one of: direct materials, direct bet service overhead, or a period cost (6 marks) 22 b. Based on your answer in part a, what is the total cost of service overhead? (2 marks) 23 c. What is the total cost of legal services provided? (1 mark) 24 25 d. What is the total amount of period costs? (2 marks) e. Why is it important for the law firm to determine the cost of services provided? How will they use this information? (2 marks) 5