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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?

a. $23,000
b. $15,500
c. $25,500
d. $21,500

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