Indigo, Reiser, and Associates, a law firm, employs Activity-Based Costing (ABC). The following estimated data for each of the activity cost pools is provided for 2022:| Activity Cost Pools | Estimated Overhead | Estimated Use of Cost Drivers per Activity ||----------------------------|--------------------|--------------------------------------------|| Researching legal issues | $52,170 | 1,110 research hours || Preparing legal documents | $594,000 | 33,000 pages || Meeting with clients | $1,783,980 | 9,010 professional hours |During 2022, the firm worked 870 research hours, 10,210 professional hours, and prepared 27,100 document pages.Compute the total overhead applied during the year 2022.Total overhead applied: $ _______

The applied overhead rate is computed as follows: -Determine total applied overhead as follows: - Computation - Total Applied OverheadParticularsAmountResearching Legal Issues ($52,170 x 870/1,110)$40,890Printing Legal Documents ($594,000 x 27,100/33,000)$487,800Meeting with Clients ($1,783,980 x 10,210/9,010)$2,021,580Total Applied Overhead$2,550,270Total Applied Overhead$2,550,270

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Indigo, Reiser, and Associates, a law firm, employs ABC. The following Estimated data for each of the activity cost pools is provided for 2022 Activity Cost Pools Researching legal issues Preparing legal documents Meeting with clients Estimated Overhead Total overhead applied $ $ 52,170 594,000 1,783,980 Estimated Use of Cost Drivers per Activity 1,110 research hours 33,000 pages 9,010 professional hours During 2022, the firm worked 870 research hours, 10,210 professional hours, and prepared 27,100 document pages. Compute the total overhead applied during the year 2022.

Indigo, Reiser, and Associates, a law firm, employs ABC. The following Estimated data for each of the activity cost pools is provided for 2022 Activity Cost Pools Researching legal issues Preparing legal documents Meeting with clients Estimated Overhead Total overhead applied $ $ 52,170 594,000 1,783,980 Estimated Use of Cost Drivers per Activity 1,110 research hours 33,000 pages 9,010 professional hours During 2022, the firm worked 870 research hours, 10,210 professional hours, and prepared 27,100 document pages. Compute the total overhead applied during the year 2022.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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