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Data concerning the activities of Legal Eye, LLC, a law firm, have been provided

ID: 2482050 • Letter: D

Question

Data concerning the activities of Legal Eye, LLC, a law firm, have been provided below:

                    

Activities

Estimated OH Cost

Expected

Activity

$27,750

750 research hours

$1,102,050

6,975 meeting hours

$31,920

2,280 documents

Legal Eye uses activity-based costing. The company needs to estimate the cost of a client job that is expected to require $20,500 of professional labor costs, 125 research hours, 8 meeting hours, and 65 documents. How much of the total estimated job cost is related to the 8 hours of meeting time?

$910

$1,264

$4,625

$6,799

Activities

Estimated OH Cost

Expected

Activity

Researching legal issues

$27,750

750 research hours

Meeting with clients

$1,102,050

6,975 meeting hours

Preparing documents

$31,920

2,280 documents

Explanation / Answer

Overhead rate per meeting hour = 1102050 /6975 =$ 158 per meeting hour

Allocated cost = 8 *158 = $ 1264

correct option is ""B"