The partners of Mason and Hutton, attorneys-at-law, decide to implement an activity-based costing system for their firm.

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The partners of Mason and Hutton, attorneys-at-law, decide to implement an activity-based costing system for their firm. They identify the following three cost pools and budgeted amounts for each for the coming year: fringe benefits, $450,000; paralegal support, $250,000; and research support, $650,000. It is determined that the best cost driver for fringe benefits is professional labor dollars ($1,460,000); paralegal support is partner labor hours (4,000); and research support is professional labor hours (20,000).
Compute the budgeted overhead rates for each of the three cost pools
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Related Book For  answer-question

Principles of Cost Accounting

ISBN: 978-1305087408

17th edition

Authors: Edward J. Vanderbeck, Maria Mitchell

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