Given Data P03-25: HOBART, EVANS, AND NIX Hobart, Evans and Nxi is a small law firm...

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Given Data P03-25: HOBART, EVANS, AND NIX Hobart, Evans and Nxi is a small law firm that employees 10 partners and 12 support persons. The firm uses a job order costing system to accumulate costs chargeable to each client, and it is organized into two departments-the research and Documents departments and the litigation Department. The firm uses predetermined overhead rates to charge the costs of these departments to its clients. At the beginning of the year, the firm's management made the following estimates for the year. Estimates, beginning of year: Research-hours Direct attorney-hours Legal forms & supplies Direct attorney cost Department overhead cost Department Research & Litigation Documents 24,000 9,000 0 18,000 RM 5,000.00 RM 16,000.00 RM 450,000.00 RM 900,000.00 RM 840,000.00 RM 360,000.00 The predetermined overhead rate in the Research and Documents department is based on research - hours, and the rate in the Litigation Department is based on direct attorney costs. The costs charged to each clients are made up of three elements: legal forms and supplies used, direct attorney costs incurred, and an applied amount of overhead from each department in which work is performed on the case. Case 418-3 was initiated on February 23 and completed on May 16. During this period, the following costs and time were recorded on the case. Case 4108-3: Research-hours Direct attorney-hours Legal forms & supplies Direct attorney cost Required: Research & Department Litigation Documents 26 0 7 114 RM 80.00 RM 40.00 RM 350.00 RM 5,700.00 1 Compute the predetermined overhead rate used during the year in the Research and Documents department. Compute the rate used in the litigation department. 2 Using the rate computed in (1) above, compute the total overhead costs applied to case418-3. 3 What would be the total costs charged to Case 418-3? Show computations by department and in total for the case. 4 At the end of the year, the firm's records revealed the following actual cost and operating data for all cases handled during the year: Actual data for all jobs during year: Research-hours Direct attorney-hours Legal forms & supplies Research & Documents Department Litigation 26,000 8,000 0 15,000 RM 19,000.00 RM 6,000.00 Direct attorney cost Department overhead cost RM 400,000.00 RM 750,000.00 RM 870,000.00 RM 315,000.00 Determined the amount of under applied or over applied overhead cost in each department each year. eLearning Question 1 HOBART, EVANS, AND NIX Computations 1) 1. Research and Documents predetermined overhead rate Estimated overhead cost Estimated amount of allocation base Allocation Rate 2. Litigation predetermined overhead rate Estimated overhead cost Estimated amount of allocation base Allocation Rate 2) 2. Overhead cost applied to case 418-3: Research and Documents overhead applied Litigation overhead applied Total overhead cost 3) 3. Total cost of case 418-3: Departments Research & Litigation Documents Total 4) Legal forms & supplies Direct attorney cost Overhead cost applied 4. Under or Over applied overhead Department overhead cost incurred Department overhead cost applied Under (or overapplied) overhead Research & Litigation Documents Given Data P03-25: HOBART, EVANS, AND NIX Hobart, Evans and Nxi is a small law firm that employees 10 partners and 12 support persons. The firm uses a job order costing system to accumulate costs chargeable to each client, and it is organized into two departments-the research and Documents departments and the litigation Department. The firm uses predetermined overhead rates to charge the costs of these departments to its clients. At the beginning of the year, the firm's management made the following estimates for the year. Estimates, beginning of year: Research-hours Direct attorney-hours Legal forms & supplies Direct attorney cost Department overhead cost Department Research & Litigation Documents 24,000 9,000 0 18,000 RM 5,000.00 RM 16,000.00 RM 450,000.00 RM 900,000.00 RM 840,000.00 RM 360,000.00 The predetermined overhead rate in the Research and Documents department is based on research - hours, and the rate in the Litigation Department is based on direct attorney costs. The costs charged to each clients are made up of three elements: legal forms and supplies used, direct attorney costs incurred, and an applied amount of overhead from each department in which work is performed on the case. Case 418-3 was initiated on February 23 and completed on May 16. During this period, the following costs and time were recorded on the case. Case 4108-3: Research-hours Direct attorney-hours Legal forms & supplies Direct attorney cost Required: Research & Department Litigation Documents 26 0 7 114 RM 80.00 RM 40.00 RM 350.00 RM 5,700.00 1 Compute the predetermined overhead rate used during the year in the Research and Documents department. Compute the rate used in the litigation department. 2 Using the rate computed in (1) above, compute the total overhead costs applied to case418-3. 3 What would be the total costs charged to Case 418-3? Show computations by department and in total for the case. 4 At the end of the year, the firm's records revealed the following actual cost and operating data for all cases handled during the year: Actual data for all jobs during year: Research-hours Direct attorney-hours Legal forms & supplies Research & Documents Department Litigation 26,000 8,000 0 15,000 RM 19,000.00 RM 6,000.00 Direct attorney cost Department overhead cost RM 400,000.00 RM 750,000.00 RM 870,000.00 RM 315,000.00 Determined the amount of under applied or over applied overhead cost in each department each year. eLearning Question 1 HOBART, EVANS, AND NIX Computations 1) 1. Research and Documents predetermined overhead rate Estimated overhead cost Estimated amount of allocation base Allocation Rate 2. Litigation predetermined overhead rate Estimated overhead cost Estimated amount of allocation base Allocation Rate 2) 2. Overhead cost applied to case 418-3: Research and Documents overhead applied Litigation overhead applied Total overhead cost 3) 3. Total cost of case 418-3: Departments Research & Litigation Documents Total 4) Legal forms & supplies Direct attorney cost Overhead cost applied 4. Under or Over applied overhead Department overhead cost incurred Department overhead cost applied Under (or overapplied) overhead Research & Litigation Documents