Shepherd and Ford, a CPA firm uses activity-based costing to determine the costs of its cases. Information
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Shepherd and Ford, a CPA firm uses activity-based costing to determine the costs of its cases. Information about costs follow:
Cost Pool Budgeted Costs Budgeted Cost Driver Budgeted Rate
Paraprofessional support $540,000 $1,800,000 professional labor cost $.30 / professional labor dollar
Secretarial support 900,000 3,000 partner labor hours $300 / partner labor hour
Facilities 500,000 25,000 professional labor hours $20 / professional labor hour
The Harrison audit required 80 professional hours, 20 of which were partner hours, and labor costs totaled $20,000. How much overhead was assigned to the Harrison audit?
Related Book For
Financial and Managerial Accounting Information for Decisions
ISBN: 978-0078025761
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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