8 of 25 Dursley & Marvolo, Attorneys at Law provide a variety of legal services.

Question

8 of 25 Dursley & Marvolo, Attorneys at Law provide a variety of legal services. The law firm uses an activity-based costing system and has developed the following activity pool cost rates Activity Cost Pool Activity Rate Legal research Court filing costs Document preparation $27 per document Cost and activity data related to two clients are as follows: $54 per hour of paralegal time $670 per case filed Client 82 Client 122 Number of paralegal hours Number of cases filed Number of documents How much overhead cost would be allocated to Client 82 using the activity-based costing system? 35 4 14 79 32 $14,098 S4,948 $751 O $39,803

Explanation / Answer

Client 82 Legal research 1890 =54*35 Court filing costs 2680 =670*4 Document preparation 378 =27*14 Overhead costs allocated 4948 Option 2 is correct

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