Perez Co provides forensic accounting services The company 's three activities, their overhead cost, and their cost drivers follow The company 's two service lines and their actual activity usage follow Required 1 Compute activity rates using activity based costing 2 Allocate overhead cost to Litig...

To compute the activity rates using activitybased costing ABC and allocate overhead costs to the two ...

Perez Co. provides forensic accounting services. The company's three activities, their overhead cost, and their cost drivers

Question:

Perez Co. provides forensic accounting services. The company's three activities, their overhead cost, and their cost drivers follow.

Activity Clerical support.... $80,000 Facility services... 64,000 Building cost..... 96,000 Budgeted Cost The company's two service lines and their actual activity usage follow.

Service Litigation support. Fraud investigation..... Actual Activity Usage Documents Cases Square Feet 1,500

Required
1. Compute activity rates using activity-based costing.
2. Allocate overhead cost to Litigation support and Fraud investigation. Compute overhead cost per case for each service line.

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