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GNB+13e+Solutions+Ch+03

GNB+13e+Solutions+Ch+03 - P3-25 Hobart Evans Nix 1...

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P3-25 Hobart, Evans & Nix 1. Predetermined Overhead Rates Litigation Departmental overhead cost $840,000 $360,000 Research hours 24,000 Direct attorney cost $900,000 Departmental overhead rate $35.00 0.40 2. Applied Overhead for Case 418-3 Litigation Total Research hours 26 Direct attorney cost $5,700 Departmental overhead rate $35 0.40 Departmental overhead applied $910 $2,280 $3,190 3. Total Cost for Case 418-3 Litigation Total Legal forms & supplies $80 $40 $120 Direct attorney cost $350 $5,700 $6,050 Departmental overhead applied $910 $2,280 $3,190 (See above) Total cost $1,340 $8,020 $9,360 4. Over- & Underapplied Overhead Litigation Total Research hours 26,000 Direct attorney cost $750,000 Departmental overhead rate $35 $0.40 Departmental overhead applied $910,000 $300,000 $1,210,000 Litigation Total Departmental overhead incurred $870,000 $315,000 $1,185,000 Departmental overhead applied $910,000 $300,000 $1,210,000 (See above) Over/Underapplied overhead $(40,000) $15,000 $(25,000) Overapplied Underapplied Overapplied Research & Documents Research & Documents Research & Documents Research & Documents Research & Documents
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P3-27 Gitano Products 1a. Predetermined Overhead Rate Estimated manufacturing overhead $800,000
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