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Computing activity-based costing rates The partners of Mason and Hutton, attorneys-at-law, decide to implement an activity-based costing system for their firm. They identify the following
Computing activity-based costing rates The partners of Mason and Hutton, attorneys-at-law, decide to implement an activity-based costing system for their firm. They identify the following three cost pools and budgeted amounts for each for the coming year: fringe benefits, $450,000; paralegal L03 Similar to Recall and Review 2 support, $250,000; and research support, $650,000. It is determined . that the best cost driver for fringe benefits is professional labor dollars ($1,460,000); paralegal support is partner labor hours (4,000); and resea rch support is professional labor hours (20,000). Compute the budgeted overhead rates for each of the three cost pools. E9-11
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