Homework Help is Here – Start Your Trial Now!
Business
Accounting
Winkle, Kotter, and Zale is a small law firm that contains 10 partners and 12 support persons. The firm employs a job-order costing system to accumulate costs chargeable to each client, and it is organized into two departments-the Research and Documents Department 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 curent year, the firm's management made the following estimates for the year Department Research and Documents 20,400 9,300 $ 17,700 $ 430,100 $714,000 Litigation Research-hours Direct attorney-hours Materials and supplies Direct attorney cost Departmental overhead cost 16.400 $ 5,500 $ 799.400 $ 311,766 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 attorney cost The costs charged to each client are made up of three elements: materials and supplies used, direct attorney 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 the case: Department Research and Documents Litigation 17 10 $ 52 Research-hours Direct attorney-hours Materials and supplies Direct attorney cost 42 $ 31 $2,000 $410 Required: 1-a Compute the predetermined overhead rate used during the year in the Research and Documents Department Predetermined overhead rate per hour 1-b. Compute the predetermined overhead rate used during the year in the Litigation Department Predetermined overhead rate % of direct attorney cost 2 Using the rates you computed in (1) above, compute the total overhead cost applied to Case 618-3 seducation.com/hm.tpx 1/3 Chapter 4 Homework Total overhead cost

Winkle, Kotter, and Zale is a small law firm that contains 10 partners and 12 support persons. The firm employs a job-order costing system to accumulate costs chargeable to each client, and it is organized into two departments-the Research and Documents Department 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 curent year, the firm's management made the following estimates for the year Department Research and Documents 20,400 9,300 $ 17,700 $ 430,100 $714,000 Litigation Research-hours Direct attorney-hours Materials and supplies Direct attorney cost Departmental overhead cost 16.400 $ 5,500 $ 799.400 $ 311,766 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 attorney cost The costs charged to each client are made up of three elements: materials and supplies used, direct attorney 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 the case: Department Research and Documents Litigation 17 10 $ 52 Research-hours Direct attorney-hours Materials and supplies Direct attorney cost 42 $ 31 $2,000 $410 Required: 1-a Compute the predetermined overhead rate used during the year in the Research and Documents Department Predetermined overhead rate per hour 1-b. Compute the predetermined overhead rate used during the year in the Litigation Department Predetermined overhead rate % of direct attorney cost 2 Using the rates you computed in (1) above, compute the total overhead cost applied to Case 618-3 seducation.com/hm.tpx 1/3 Chapter 4 Homework Total overhead cost

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Winkle, Kotter, and Zale is a small law firm that contains 10 partners and 12 support persons. The firm employs a job-order costing system to accumulate costs chargeable to each client, and it is organized into two departments-the Research and Documents Department 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 curent year, the firm's management made the following estimates for the year Department Research and Documents 20,400 9,300 $ 17,700 $ 430,100 $714,000 Litigation Research-hours Direct attorney-hours Materials and supplies Direct attorney cost Departmental overhead cost 16.400 $ 5,500 $ 799.400 $ 311,766 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 attorney cost The costs charged to each client are made up of three elements: materials and supplies used, direct attorney 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 the case: Department Research and Documents Litigation 17 10 $ 52 Research-hours Direct attorney-hours Materials and supplies Direct attorney cost 42 $ 31 $2,000 $410 Required: 1-a Compute the predetermined overhead rate used during the year in the Research and Documents Department Predetermined overhead rate per hour 1-b. Compute the predetermined overhead rate used during the year in the Litigation Department Predetermined overhead rate % of direct attorney cost 2 Using the rates you computed in (1) above, compute the total overhead cost applied to Case 618-3 seducation.com/hm.tpx 1/3 Chapter 4 Homework Total overhead cost
Transcribed Image Text:Winkle, Kotter, and Zale is a small law firm that contains 10 partners and 12 support persons. The firm employs a job-order costing system to accumulate costs chargeable to each client, and it is organized into two departments-the Research and Documents Department 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 curent year, the firm's management made the following estimates for the year Department Research and Documents 20,400 9,300 $ 17,700 $ 430,100 $714,000 Litigation Research-hours Direct attorney-hours Materials and supplies Direct attorney cost Departmental overhead cost 16.400 $ 5,500 $ 799.400 $ 311,766 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 attorney cost The costs charged to each client are made up of three elements: materials and supplies used, direct attorney 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 the case: Department Research and Documents Litigation 17 10 $ 52 Research-hours Direct attorney-hours Materials and supplies Direct attorney cost 42 $ 31 $2,000 $410 Required: 1-a Compute the predetermined overhead rate used during the year in the Research and Documents Department Predetermined overhead rate per hour 1-b. Compute the predetermined overhead rate used during the year in the Litigation Department Predetermined overhead rate % of direct attorney cost 2 Using the rates you computed in (1) above, compute the total overhead cost applied to Case 618-3 seducation.com/hm.tpx 1/3 Chapter 4 Homework Total overhead cost
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS