Legal Beagles offers a variety of legal services. They have three support activi

Question

Legal Beagles offers a variety of legal services. They have three support activities - investigations, secretarial and research. The following data has been collected over the past month. The lawyers had 1,244 billable hours over this time period. Direct labor costs are $100 per hour. The staffing capacity for support activities is determined by the estimated billable hours. If a single volume-based cost driver is used what will be the most likely rate used to assign the costs of support activities? (round your answer to the nearest dollar.)
Support Activities

Resource Costs

Activity Volumes
Investigation
$50,000
500 Investigation Hours
Secretarial
$5,760
480 Secretarial Hours
Research
$6,500
100 Inspections

a. $100
b. $50
c. $125
d. $65

Explanation / Answer

50 (50000+5760+65000)/1244

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