Business
Business, 06.08.2019 16:10, stephanieboyd

Winkle, kotter, and zale is a small law firm that contains 10 partners and 10 support persons. the firm employs 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 t its clients. at the beginning of the current year, the firm\'s management made the following estimates for the year: departmentresearch and documents litigationresearch-hours 20,000 -direct attorney-hours 9,000 16,000materials and supplies $18,000 $5,000direct attorney cost $430,000 $800,000departmental overhead cost $700,000 $320,000the 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: materials and supplies used, direct attorney cost incurred, and an applied amount of overhead from each department in which work is performed on the case. case 618-3 was initiated on february 10 and completed on june 30. during this period, the following costs and time were recorded on the case: departmentresearch and documents litigationresearch-hours 18 -direct attorney-hours 9 42materials and supplies $50 $30direct attorney cost $410 $2,100question 1 - compute the predetermined overhead rates used during the year in the research and documents department and the litigation department. show your work. question 2 - using the rates computed in question 1, compute the total overhead cost applied to case 618-3. show your work. question 3 - what would be the total cost charged to case 618-3? show computations by department and in total for the case. question 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: departmentresearch and documents litigationresearch-hours 23,000 -direct attorney-hours 8,000 15,000materials and supplies $19,000 $6,000direct attorney cost $400,000 $275,000departmental overhead cost $770,000 $300,000determine the amount of underapplied or overapplied overhead cost in each department for the year.

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