Please write down all calculations. Thank you 5. Hobart,...

60.1K

Verified Solution

Question

Accounting

Please write down all calculations. Thank you
image
image
5. Hobart, Evans, and Nix is a small law firm that employs 10 partners and 12 support persons. The firm uses 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 year, the firm's management made the following estimates for the year: Depa Research and Documents nation Research hours 24.000 Direct attorney hours 9.000 18.000 Legal forms and supplies 516 000 55.000 Direct attorney cost 5450.000 5900.000 Departmental owerhead cost $340.000 $350.000 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: legal forms 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 418-3 was initiated on February 23 and completed on May 16. During this period, the following costs and time were recorded on the case: 114 540 $5.700 Department Research and Documents Reseach-hours 26 Direct attorney hours 7 Legal forms and supplies 580 Directory.com 5350 Required: 1. Compute the predetermined overhead rate used during the year in the Research and Documents Department. Compute the rate used in the Litigation Department 2. Using the rates you computed in (1) above, compute the total overhead cost applied to Case 418-3. 3. What would be the total cost charged to Case 418-32 Show computations by department and in total for the case. 4. At the end of the year, the firm's records revealed the following actual cost and operating data for all cases handled during the year. Dement Research and Documents Litigation Research hours 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 year, the fim's management made the following estimates for the year: Deport Rwand Documen Research hours 24.000 Direct attorney hours 18.000 Legal forms and supplies 56.000 S5.000 Directory cost 550.000 5000.000 Departmental overhead cost 5.300.000 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 cach client are made up of three clements: legal forms 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 418-3 was initiated on February 23 and completed on May 16. During this period, the following costs and time were recorded on the case: 80 5350 540 15.700 Diplorer hand Documents Ligation Research hours Direct attorney hours Legal forms and supplies Directory.cost Required: 1. Compute the predetermined overhead rate used during the year in the Research and Documents Department. Compute the rate used in the Litigation Department. 2. Using the rates you computed in (1) above, compute the total overhead cost applied to Case 418-3. 3. What would be the total cost charged to Case 418-32 Show computations by department and in total for the case. 4. At the end of the year, the firm's records revealed the following actual cost and operating data for all cases handled during the year. Lion Research hours Directory hours Legal forms and supplies Directory cost Departmental overhead.com Rand Documents 20.000 3.000 512.000 500.000 570.000 15.000 56.000 550.000 5315.000 Determine the amount of underapplied or overapplied overhead cost in each department for the year. 5. Hobart, Evans, and Nix is a small law firm that employs 10 partners and 12 support persons. The firm uses 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 year, the firm's management made the following estimates for the year: Depa Research and Documents nation Research hours 24.000 Direct attorney hours 9.000 18.000 Legal forms and supplies 516 000 55.000 Direct attorney cost 5450.000 5900.000 Departmental owerhead cost $340.000 $350.000 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: legal forms 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 418-3 was initiated on February 23 and completed on May 16. During this period, the following costs and time were recorded on the case: 114 540 $5.700 Department Research and Documents Reseach-hours 26 Direct attorney hours 7 Legal forms and supplies 580 Directory.com 5350 Required: 1. Compute the predetermined overhead rate used during the year in the Research and Documents Department. Compute the rate used in the Litigation Department 2. Using the rates you computed in (1) above, compute the total overhead cost applied to Case 418-3. 3. What would be the total cost charged to Case 418-32 Show computations by department and in total for the case. 4. At the end of the year, the firm's records revealed the following actual cost and operating data for all cases handled during the year. Dement Research and Documents Litigation Research hours 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 year, the fim's management made the following estimates for the year: Deport Rwand Documen Research hours 24.000 Direct attorney hours 18.000 Legal forms and supplies 56.000 S5.000 Directory cost 550.000 5000.000 Departmental overhead cost 5.300.000 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 cach client are made up of three clements: legal forms 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 418-3 was initiated on February 23 and completed on May 16. During this period, the following costs and time were recorded on the case: 80 5350 540 15.700 Diplorer hand Documents Ligation Research hours Direct attorney hours Legal forms and supplies Directory.cost Required: 1. Compute the predetermined overhead rate used during the year in the Research and Documents Department. Compute the rate used in the Litigation Department. 2. Using the rates you computed in (1) above, compute the total overhead cost applied to Case 418-3. 3. What would be the total cost charged to Case 418-32 Show computations by department and in total for the case. 4. At the end of the year, the firm's records revealed the following actual cost and operating data for all cases handled during the year. Lion Research hours Directory hours Legal forms and supplies Directory cost Departmental overhead.com Rand Documents 20.000 3.000 512.000 500.000 570.000 15.000 56.000 550.000 5315.000 Determine the amount of underapplied or overapplied overhead cost in each department for the year

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students