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Silver Law Firm provides litigation and mediation services. The company reports the following overhead cost data for the year. It worked on 5 0 litigation
Silver Law Firm provides litigation and mediation services. The company reports the following overhead cost data for the year. It worked on litigation cases and mediation cases during this period.
tableActivityBudgeted Cost,Budgeted Activity UsageClerical support,$ documentsFacility services, billable hoursClient consultations, court dates
Activity usage for each service follows.
tableActivityActivity Cost Driver,Litigation,Mediation,TotalDocumentsBillable hours,Court dates,
Required:
Compute an activity rate for each activity using activitybased costing.
Compute overhead cost per unit case for both litigation and mediation using activitybased costing.
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Compute overhead cost per unit case for both litigation and mediation using activitybased costing. Round "Activity rate" to decimal
Allocate overhead costs to litigation using activitybased costing
tableActivityActivity Usage,Activity Rate,Allocated CostClerical supportFacility servicesClient consultationsTotal allocated costUnits produced casesOverhead cost per case,,,
Allocate overhead costs to mediation using activitybased costing
tableActivityActivity Usage,Activity Rate,Allocated CostClerical support,,,Facility services,,,Client consultations,,,Total allocated cost,,,Units produced casesOverhead cost per case,,,
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