Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

What was the indirect cost attributed by the Litigation Department to Mr. Applebee's job? Please enter your answer to the nearest dollar, e.g. $4,032.33 should

image text in transcribed

image text in transcribed

What was the indirect cost attributed by the Litigation Department to Mr. Applebee's job? Please enter your answer to the nearest dollar, e.g. $4,032.33 should be entered as 4032. nRMST PFrnRn DB-ORDER COSTING FOR SERVCE COMPANIES INSTRUCTIONS. JMPP to PART (b) to start with the DB COST record for Mr Applebee (the green highlighted is the DIRECT COSTS and LABOUR. Overhead costs are allocated for 2 functions - Research and for Litigation. Compute total overhead costsfor each function (see highlighted in yellow). To determine predetermined rate (research is allocated based on total research hours) and (litigation is allocated based on total lawyer hoursin the litigation department). Walter, Knoble and Notter is a small law firm that employs 10 partners and 10 support people. The firm employsa job-order costing system to accumulate costs chargeable to each dient, and it is organized into two departments - the Research and Documents Department and the Litigation Department. The firm uses predetermined overhead ratesto charge the costs of these departmentsto itsclients. At the beginning of the current year, the firm's management made the following estimates for the year: The predetermined overhead rate in the Research and Documents Department is based on researchhours and the rate in the Litigation Department is based on direct lawyer hours. The costs charged to each client are made up of three elements (headings): materials and suppliesused, direct lawyer costs incurred and an applied amount of overhead from each department in which work is performed on the case. REQUIRED: (a) Use the Exl sheet used in dassfor week 4. (b) Case 618-3 (for Mr Applebee) was initiated on February 8 and completed on June 29. Complete a job-order cost record for Mr Applebee based on the following information: Research done by Research and Documents department totalled 20 hours. Lawyers spent 10 hours doing research and compiling documents and 41 hours were spent in litigation. Materials and supplies ued in Research and Documentstotalled \$55 and in litigation \$35

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0697789938

Students also viewed these Accounting questions