Question
Hello, can someone help me with the following problem? 1. compute the activity-based costing rates for the law firm. 2. compute the budgeted overhead rates
Hello, can someone help me with the following problem?
1. compute the activity-based costing rates for the law firm.
2. compute the budgeted overhead rates for each of the three cost pools.
| The partners of Oops and Whynot, 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 support: $300,000 | ||||
| research support:$750,000 | ||||
| It is determined that the best cost driver for each is as follows: | ||||
| for fringe benefits: professional labor dollars - $1,800,000 | ||||
| for paralegal support: partner labor hours - 4,000 | ||||
| for research support: professional labor hours - 20,000. | ||||
| Compute the budgeted overhead rates for each of the three cost pools. | ||||
| Cost Pool | Budgeted Costs | Cost Drivers | Budgeted Rate | |
| Fringe Benefits | ||||
| Paralegal Support | ||||
| Research Support | ||||
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The Human Resource Function Audit
Authors: Peter Reilly, Marie Strebler, Polly Kettley
1st Edition
0955970776, 978-0955970771
