Q.

XFILES Consulting is an accounting rm specializing in tax planning and advising. The firm is composed of ve partners and ve support persons. The rm employs a job-order costing system to accumulate costs chargeable to each client, and it is organized into two departments: the tax reports ling department and the tax planning department. The rm uses predetermined overhead rates to charge the costs of these departments to its clients. At the beginning of the current year, the firm's management made the following estimates for the year 20x9: Department Tax reports ling Tax planning Tax reporting hours 20,000 Direct partner-hours 9,000 16,000 Materials and supplies 18,000 5,000 Direct partners cost 430,000 800,000 Departmental overhead cost 700,000 320,000 The predetermined overhead rate in the tax reports ling department is based on tax reports ling hours, and the rate in the tax planning department is based on direct partner cost. The costs chargeable to each client are made up of three elements: materials and supplies used, direct partner costs incurred, and an applied amount of overhead from each department in which work is performed for the client. In March 20x9, client Ferguson has job 605, consisting of a few tax reports prepared and led and also tax planning services. During this period, the following costs and time were recorded for client Ferguson: Department Tax reports ling Tax planning Tax reporting hours 18 Direct partner-hours 9 42 Materials and supplies 6 50 30 Direct partners cost 410 2,100 Requirement 3: Replace "???" with the correct labels 1}Tax reports and ling predetermined overhead rate: Numerator: ??? Denominator: ??? per hour rate " man/01 2) Litigation predetermined overhead rate: Numerator: ??? Denominator: ??? '36 direct partner cost Requirement b Tax reports ling overhead applied: Tax planning overhead applied: Total overhead cost