Carter and Powell is a small law firm that contains 6 partners and 10 support personnel. The company uses a normal job-order costing system in which predetermined overhead rates are used to apply manufacturing overhead cost to client jobs. The predetermined overhead rate in the Research and Documents (R & D) Department is based on research hours and the rate in the Litigation Department is based on direct labor cost. At the beginning of the year, the company's management made the following estimates: Department R&D Litigation Research hours 24,000 0 Legal forms and supplies $16,000 $5,000 Direct labor cost $450,000 $720,000 Total overhead cost $840,000 $360,000 The costs charged to each client are made up of three elements: legal forms and supplies used, direct labor costs incurred, and applied overhead from each department in which work is performed on the case. Case 418-3 was started on July 1 and completed on August 10. The company's cost records show the following information concerning the job: Department R&D Research hours 26 Legal forms and supplies. $80 Direct labor cost $350 Litigation 0 $40 $5,700 REQUIRED: a. Compute the predetermined overhead rate used during the year in the Research and Documents Department. Compute the rate used in the Litigation Department. Be sure to show all calculations. b. Compute the total overhead cost applied to Case 418-3. Be sure to show all detail. c. Determine the total cost recorded for Case 418-3 (show all detail). d. At the end of the year, the records of the firm revealed the following actual cost and operating data for all jobs worked on during the year as seen below. What was the amount of underapplied or overapplied overhead in each department at the end of the year? Research hours Department R&D Litigation 26,000 0 Legal forms and supplies $19,000 Direct labor cost $420,000 $6,000 $750,000 Total overhead cost $902,000 $390,000