Field Legal Services is trying to determine the variable and fixed elements of its service overhead. The following data have been collected from recent activity:     Total Service Overhead Cases Worked March $22,900 112 April 20,800 98 May 26,400 138   The formula for total service overhead costs is a. $5,600 + $140 per case. b. $5,600 + $40 per case. c. $7,823 + $134.62 per case. d. $7,080 + $140 per case.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Field Legal Services is trying to determine the variable and fixed elements of its service overhead. The following data have been collected from recent activity:

 

 

Total Service Overhead

Cases Worked

March

$22,900

112

April

20,800

98

May

26,400

138

 

The formula for total service overhead costs is

a.

$5,600 + $140 per case.

b.

$5,600 + $40 per case.

c.

$7,823 + $134.62 per case.

d.

$7,080 + $140 per case.

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