Prompt

Bratton, Golubeva and Ghosh is a small law firm that employs $10$ partners and $12$ support persons. The firm uses a job$-$order costing system to accumulate costs chargeable to each client, and it is organized into two departments, the Research and Documents Department and the Litigation Department. The firm uses predetermined overhead rates to charge the costs of these departments to its clients. At the beginning of the year, the firm$$s management made the following estimates for the year:

Department

Research and Documents Litigation

Research$-$hours $24,000---$

Direct attorney$-$hours $9,00018,000$

Legal forms and supplies $$16,000$ $$5,000$

Direct attorney cost $$450,000$ $$900,000$

Departmental overhead cost $$840,000$ $$360,000$

The predetermined overhead rate in the Research and Documents Department is based on research$-$hours, and the rate in the Litigation Department is based on direct attorney cost. The costs charged to each client are made up of three elements: legal forms and supplies used, direct attorney costs incurred, and an applied amount of overhead from each department in which work is performed on the case. Case $418-3$ was initiated on January $3$rd and completed on February $14$th$.$ During this period, the following costs and time were recorded on the case:

Department

Research and Documents Litigation

Research$-$hours $26---$

Direct attorney$-$hours $7114$

Legal forms and supplies $$80$ $$40$

Direct attorney cost $$350$ $$5,700$

Question

What is the predetermined overhead rate used during the year in the Research and Documents Department?

Group of answer choices

$$93$

$$35$

$$55$

$$39$