Ch03problemtemplate(1)

Ch03problemtemplate(1) - 870,000 315,000 Underapplied(or...

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Student Name: Class: Problem 3-25 n T HOBART, EVANS, AND NIX Computations 1) 1. Research & Documents predetermined overhead rate: Estimated overhead cost $840,000 Estimated amount of allocation base 24,000 Per hour $35 Correct! Litigation predetermined overhead rate: Estimated overhead cost $360,000 Estimated amount of allocation base - Direct attorney cost (as percentage) 40% Correct! 2) 2. Overhead cost applied to case 418-3: Research & Documents overhead applied $910,000 Litigation overhead applied 0 Total overhead cost $1,270,000 Try again! 3) 3. Total cost of case 418-3: Departments Research & Documents Litigation Total Legal forms and supplies Direct Attorney Cost Overhead cost applied Total cost Research & 4) 4. Under- or overapplied overhead: Documents Litigation Departmentas overhead cost incurred $910,000 Departmentas overhead cost applied:
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Unformatted text preview: 870,000 315,000 Underapplied (or overapplied) overhead $(40,000) $- Correct! Try again! Given Data P03-25: HOBART, EVANS, AND NIX Department Research & Litigation Documents Estimates, beginning of year: Research-hours 24,000 - Direct attorney-hours 9,000 18,000 Legal forms & supplies $16,000 $5,000 Direct attorney cost $450,000 $900,000 Department overhead cost $840,000 $360,000 Case 4108-3: Research-hours 26 - Direct attorney-hours 7 114 Legal forms & supplies $80 $40 Direct attorney cost $350 $5,700 Actual data for all jobs during year: Research-hours 26,000 - Direct attorney-hours 8,000 15,000 Legal forms & supplies $19,000 $6,000 Direct attorney cost $400,000 $750,000 Department overhead cost $870,000 $315,000...
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