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CoursHeroTranscribedText: Core 2 Workshop Activities Activity 5 Costing concepts Read each scenario and answer...

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Accounting

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CoursHeroTranscribedText: Core 2 Workshop Activities Activity 5 Costing concepts Read each scenario and answer the questions below. Scenario 1 McKenzie, Brackman, Chaney and Kuzak (MBCK) is a law firm operating in Halifax, Nova Scotia. Its controller, Mary, has determined that MBCK has direct labour for both lawyers and support staff, as well as overhead that consists of office rent and utilities. Normally, lawyers and support staff must work 1,500 chargeable hours each per year. Lawyers' hourly compensation, inclusive of benefits, is $125, whereas support staff's hourly rate is $55. There are currently six lawyers and two support staff employed at MBCK. Expenditures such as printing charges and phone calls are tracked to individual clients. Overhead is allocated based on chargeable hours. Total overhead costs of rent and utilities is expected to total $144,000 for the year. The office manager wants to determine the cost for drawing up the contract for a particular client. The client required that a contract be drawn up, which resulted in eight lawyer hours, four support staff hours, and expenditures of $250

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