Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Shoshone law firm has four departments: Bankruptcy, Personal Injury, Criminal, and Estate Planning. Each department uses the Word Processing Department's services to provide services

image text in transcribed
image text in transcribed
The Shoshone law firm has four departments: Bankruptcy, Personal Injury, Criminal, and Estate Planning. Each department uses the Word Processing Department's services to provide services to clients. The firm wants to allocate the costs of the Word Processing Department to the various legal departments. The costs for the current month for Word Processing are attached. Also attached is information available concerning various allocation bases being considered by the firm for allocating these costs. REQUIRED: (1) Allocate the Word Processing Department's costs to the various legal departments using only number of pages as the allocation base. Show all computations and round all answers to the nearest whole dollar. (2) Allocate the Word Processing Department's costs to the various legal departments using the following allocation approach. Show all computations and round all answers to the nearest whole dollar. (a) Cost Pool 1: Salaries and Benefits. Allocation Base: Word Processing Employee Time. (b) Cost Pool 2: Depreciation on Equipment. Allocation Base: Word Processing Computer Time. Cost Pool 3: All Other Costs. Allocation Base: Number of Pages. c) SHOSHONE LAW FIRM WORD PROCESSING DEPARTMENT COSTS FOR THE CURRENT MONTH s 22.000 2.500 4.200 Salaries and Benefits Depreciation on Equipment Supplies Copying Costs Binding Costs Total Costs 800 2.500 32,000 SHOSHONE LAW FIRM DATA FOR ALLOCATION OF WORD PROCESSING DEPARTMENT COSTS FOR THE CURRENT MONTH Allocation Base Bankruptcy Personal Injury Criminal Word Processing Employee Time (Hours) 125 225 150 Word Processing Computer Time (Hours) IS 25 30 Number of Pages 20,000 30,000 40,000 Estate Planning 300 10 10,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Sector Accounting And Auditing In EuropeThe Challenge Of Harmonization

Authors: I. Brusca, E. Caperchione, S. Cohen, F Manes Rossi

3rd Edition

1137461330, 9781137461339

More Books

Students also viewed these Accounting questions

Question

9. Find the general solution to the system of equations in Prob. 7.

Answered: 1 week ago

Question

How does your language affect the way you think?

Answered: 1 week ago