Winkle, Kotter, and Zale is a small law firm that contains 10 partners and 10 support persons. The firm employess a job ordering costing system to accumulate costs chargeable to each client, and it is organized into two departments, the research and documents department( R&D) and the litigation department The firm uses predetermined overhead rates to charge the socst of these departments to its clients. At the beginning of the current year, the firm's management made the following estimates for the year:

Department	Research and Documents	Litigation
Research hours	20,000
Direct attroney hours	9,000	16,000
Materials and supplies	$18,000	$5,000
Direct attorney costs	$430,000	$800,000
Departmental overhead cost	$700,000	$320,000

The predetermined overhead rate in the R&D department is based on research hours, and the rate in the litigation deparment is based on direct attorney cost. The charged to each client are made up of three elements: materials and supplies used, direct attorney cost incurred , and an applied amount fo overhead from each department in which work is performed on the case. Case 618-3 was intiated on February 10 and completed June 30. During this period, the following costs and time were recorded on the case:

Department	Research and Documents	Litigation
Research hours	18	------
Direct attorney hours	9	42
Materials and supplies	$50	$30
Direct attorney cost	$410	$2,100

1. Compute the predetermined overhead rates used during the year in the research and documents department and the litigation department. 2) Using the rates your computed in #1 (above), compute the total overhead cost applied to case 618-3, 3) What would be the total cost charged to case 618-3? Show computations by department and in total for the case. 4) At the end of the year, the firm's records revealed the following actual cost and operating data for all cases handled during the year:

Department	Research and Documents	Litigation
Research hours	23,000	0
Direct attorney hours	8,000	15,000
Material and supplies	$19,000	$6,000
Direct attorney costs	$400,000	$275,000
Departmental overhead cost	$770,000	$300,000

Determine the amount of underapplied or overapplied overhead cost in each department for the year