The law firm of Taub & Lawson, LLP, currently has four cases in process. Following is information related to those cases as of the end
The law firm of Taub & Lawson, LLP, currently has four cases in process. Following is information related to those cases as of the end of March 2010:
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Taub & Lawson allocates overhead to cases based on a predetermined rate of $150 per estimated court hour.
a. Determine the total cost assigned to each case as of March 31, 2010.
b. Case #3 was completed at the end of April 2010. At that time, $10,100 of direct materials had been used and 174 direct labor hours had been incurred. Of the DLHs, 72 had been spent in court. Taub & Lawson’s policy is to charge client costs plus 45 percent. What amount will be billed to the client involved in Case#3?
Case #1 Case #2 Case #3 Case #4 Direct material Direct labor hours ($190 per hour) Estimated court hours $480 8,800 3,700 850 15 40 40 90 70 12 65 120
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