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

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

Image Transcription

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 Answer

Want to see the step-by-step answer?

See Answer

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Answer
*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.
Tagged in
BusinessAccounting

Cost Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: Hills Company’s June 30 bank statement and the June ledger account for cash are summarized here:   ...

A: Calculate the cash balance (after reconciliation) of Hills  Company at the end of the June 30.

Q: GPC, Inc has a $150,000 mortgage liability. The mortgage is payable in monthly instatement of $1,543...

A: Step 1:Given:Mortgage Liability = $ 150,000Monthly Instalment = $1,543Interest Rate           = 12% ...

Q: Suivant SA’s ledger shows the following balances on December 31, 2019Share Capital, Preference, 5% $...

A: Dividend of each class of shares: Under Condition 1: One year’s dividends are in arrears on preferen...

Q: Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute...

A: Contribution margin income statement: It is a kind of income statement which reports the sales, vari...

Q: I need help with the two I got wrong which are highlighted in red.

A: Vertical analysis is generally done to express the relative sizes of the different accounts reported...

Q: The net income of F.F.  Inc., amounted to $1,920.000 for the current year. a. Compute the amount of ...

A: Note: Given net income is “$1,920.000” but it is considered as “$1,920,000”. The reason is, if the n...

Q: Haywood Printing is processing a job with the following activity rates: Activity Cost Driver ...

A: The job consists of two activity-direct labour and copying. The activity rate per labor hour and per...

Q: The market price for a product has been $50 per unit, but competitive pressures have reduced the mar...

A: Manufacturing costs: Manufacturing costs are the costs which are involved in converting the raw mate...

Q: Financial data for Joel de Paris, Inc., for last year follow:   Joel de Paris, Inc.Balance Sheet ...

A: 1. Operating assets comprise of assets which are used by the business in ordinary course to generate...