ACC 212 MANAGERIAL ACCOUNTING - SECTION 1 H-2 Winkle, Kotter and Zale is a small law firm that contains 10 partners and 10 support persons. The firm employs a job order costing system to accumulate cost chargeable to each client, and it is organized into two departments-the research and documents department and the litigation department. The firm uses predetermined overhead rates to change the costs these departments to its clients. At the beginning of the year, the firm's management made the following estimates for the year DEPARTMENT Litigationn Research hours Direct attorney-hours Materials and supplies Department overhead cost Direct attorney-c Research and Documents 20,000 9,000 18,000 600,000 430,000 16,000 5,000 400,000 800,000 ost The predetermined overhead rate in the research and documents department is based on research-hours and the rate in the litigation department is based on direct attorney cost. The costs chargeable to each client are made up of three elements: materials and supplies used, direct attorney costs incurred, and an applied amount of overhead from each department in which work is performed on the case Case 2148-2 was initiated on Aug 12 and completed Nov 30. During this period the following costs and time were recorded on the case DEPARTMENT Research and Documents 18 9 50 410 Litigation Research hours Direct attorney-hours Materials and supplies Direct attorney-cost 42 2,100 REQUIRED (1) Compute the predetermined overhead rate that should be used during the year in the research (2) Using the rates computed in (1) above, compute the cost of total overhead applied to case (3) What would be the total cost charged to case 2148-2? Show computations by department and (4) At the end of the year the firm's records revealed the following actual cost and operating data and documents department. Compute the rate that should be used in the litigation department. 2148-2. in total for the case for all cases handled during the year: DEPARTMENT Research and Documents 23,000 8,000 19,000 400,000 770,000 Litigation Research hours Direct attorney-hours Materials and supplies Direct attorney-c Department overhead cost 15,000 6,000 725,000 300,000 ost Determine the amount of under applied and over applied overhead cost in each department for the year