Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July:
The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July: July 3. Charged 470 hours of professional (lawyer) time at a rate of $170 per hour to the Obsidian Co. breech of contract suit to prepare for the trial 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $22,900 14. Charged 260 hours of professional time for the Obsidian trial at a rate of $300 per hour 18. Received invoice from consultants Wadsley and Harden for $48,400 for expert testimony related to the Obsidian trial 27. Applied office overhead at a rate of $45 per professional hour charged to the Obsidian case 31. Paid administrative and support salaries of $23,300 for the month 31. Used office supplies for the month, $7,900 31. Paid professional salaries of $161,700 for the month 31. Billed Obsidian $299,500 for successful defense of the case b. How much office overhead is over-or underapplied? Enter your answer as a positive number. \$ c. Determine the gross profit on the Obsidian case, assuming that over-or underapplied office overhead is closed monthly to cost of services
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started