Morgan, Player, and Associates, a law firm, employs ABC. The following budgeted

Question

Morgan, Player, and Associates, a law firm, employs ABC. The following budgeted data for each of the activity cost pools is provided for the year 2013.

                                                         Estimated         Expected Use of

        Activity Cost Pools               Overhead  Cost Drivers per Activity

        Researching legal issues        $     31,500                900 research hours

        Meeting with clients                1,760,000          8,800 professional hours

        Preparing legal documents          480,000           30,000 pages

During 2013 the firm experienced 800 research hours, prepared 32,000 document pages, and 7,500 professional hours.

Compute the total overhead applied during 2013.

show work if possible.

Explanation / Answer

Hi,

Please find the answer as follows:

Total overhead applied during 2013 = 31500/900*800 + 1760000/8800*7500 + 480000/30000*32000 = 2040000

Answer is 2040000

Thanks.

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