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Winder, Knotter, and Nale is a small law firm that has 10 partners and 10 support people. The firm employs a job order costing system
Winder, Knotter, and Nale is a small law firm that has 10 partners and 10 support people. The firm employs a job order costing system to accumulate costs chargeable to each client, and it is organized into two departments-th and the Litigation Department. The firm 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 e Research and Documents Department Research and Documents Litigati 21,500 9,750 Direct lauyer-hours Materials and supplies Direct lawyer cost Departmental overhead cost 17,500 $ 21,000 6,500 $458,250 $875,000 $731,000 $262,500 The predetermined overhead rate in the Research and Documents Department is based on research-hours, and the rate in the Litigation Department is based on direct lawyer cost The costs charged to each client are made up of three elements: materials and supplies used, direct lawyer costs incurred, and an applied amount of overhead from each department in which work is performed on the case. Case 618-3 was initiated on February 10 and completed on June 30. During this period, the following costs and time were recorded on
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