The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July:July 3. Charged 175 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $150 per hour.10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $12,500.14. Charged 260 hours of professional time for the Obsidian trial at a rate of $185 per hour.d. $122,750a. Operating income, $85,000b. Received invoice from consultants Wadsley and Harden for $30,000 for expert testimony related to the Obsidian trial.27. Applied office overhead at a rate of $62 per professional hour charged to the Obsidian case.31. Paid administrative and support salaries of $28,500 for the month.31. Used office supplies for the month, $4,000.31. Paid professional salaries of $74,350 for the month.31. Billed Obsidian $172,500 for successful defense of the case.a. Provide the journal entries for each of these transactions.b. How much office overhead is over- or underapplied?c. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services
The law firm of Furlan and Benson accumulates costs associated with individual cases, using a
July 3. Charged 175 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the
trial, at a rate of $150 per hour.
10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $12,500.
14. Charged 260 hours of professional time for the Obsidian trial at a rate of $185 per hour.
d. $122,750
a. Operating
income, $85,000
b. Received invoice from consultants Wadsley and Harden for $30,000 for expert testimony related to the
Obsidian trial.
27. Applied office
31. Paid administrative and support salaries of $28,500 for the month.
31. Used office supplies for the month, $4,000.
31. Paid professional salaries of $74,350 for the month.
31. Billed Obsidian $172,500 for successful defense of the case.
a. Provide the
b. How much office overhead is over- or underapplied?
c. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office
overhead is closed monthly to cost of services
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