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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
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. a) Compute the budgeted manufacturing overhead (MOH) rate? b) What is the overhead applied to jobs if the law office uses normal costing? (6 marks)
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