OH allocation using cost drivers Wambaugh Corp. has decided to implement an activity-based costing system for its in-house legal department. The legal departments primary expense is professional salaries, which are estimated for associated activities as follows:

Reviewing supplier or customer contracts (Contracts)$486,000Reviewing regulatory compliance issues (Regulation)$683,100Court actions (Court)$1,552,500

Management has determined that the appropriate cost allocation base for Contracts is the number of pages in the contract reviewed, for Regulation is the number of reviews, and for Court is number of hours of court time. For the year, the legal department reviewed 500,000 pages of contracts, number responded to 750 regulatory review requests, and logged 3,750 hours in court. a. Determine the allocation rate for each activity in the legal department. Note: Round unit costs to two decimal places (i.e. round $4.355 to $4.36).

Contracts rateAnswerper contract pageRegulation rateAnswerper review requestCourt rateAnswerper professional hour

b. What amount would be charged to a department that had 21,000 pages of contracts reviewed, made 27 regulatory review requests, and consumed 315 professional hours in court services during the year? Note: Use the rounded unit cost determined in part (a) in your calculations; round your final answer to the nearest whole dollar. $Answer