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Lawrence and Louis Law Firm uses activity-based costing to determine the costs of its cases. Information about costs follow: Cost Pool Budgeted Costs Budgeted Cost
Lawrence and Louis Law Firm uses activity-based costing to determine the costs of its cases. Information about costs follow:
Cost Pool | Budgeted Costs | Budgeted Cost Driver | Budgeted Rate | |
Legal support | $1,500,000 | $2,000,000 professional labor cost | $.75 / professional labor dollar | |
Secretarial support | 800,000 | 4,000 partner labor hours | $200 / partner labor hour | |
Facilities | 600,000 | 12,000 professional labor hours | $50 / professional labor hour |
The Laurel case required 60 professional hours, 20 of which were partner hours, and labor costs totaled $10,000. If direct costs relating to the case were $1,000, what were the total costs of the Laurel case?
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