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The Shoshone law firm has four departments: Bankruptcy, Personal Injury, Criminal, and Estate Planning. Each department uses the Word Processing Department's services to provide services to clients. The firm wants to allocate the costs of the Word Processing Department to the various legal departments. The costs for the current month for Word Processing are attached. Also attached is information available concerning various allocation bases being considered by the firm for allocating these costs. REQUIRED: (1) Allocate the Word Processing Department's costs to the various legal departments using only number of pages as the allocation base. Show all computations and round all answers to the nearest whole dollar. (2) Allocate the Word Processing Department's costs to the various legal departments using the following allocation approach. Show all computations and round all answers to the nearest whole dollar. (a) Cost Pool 1: Salaries and Benefits. Allocation Base: Word Processing Employee Time. (b) Cost Pool 2: Depreciation on Equipment. Allocation Base: Word Processing Computer Time. Cost Pool 3: All Other Costs. Allocation Base: Number of Pages. c) SHOSHONE LAW FIRM WORD PROCESSING DEPARTMENT COSTS FOR THE CURRENT MONTH s 22.000 2.500 4.200 Salaries and Benefits Depreciation on Equipment Supplies Copying Costs Binding Costs Total Costs 800 2.500 32,000 SHOSHONE LAW FIRM DATA FOR ALLOCATION OF WORD PROCESSING DEPARTMENT COSTS FOR THE CURRENT MONTH Allocation Base Bankruptcy Personal Injury Criminal Word Processing Employee Time (Hours) 125 225 150 Word Processing Computer Time (Hours) IS 25 30 Number of Pages 20,000 30,000 40,000 Estate Planning 300 10 10,000

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