Question

6. Goodman and Associates, a law firm, employs ABC. The following budgeted data for each of the activity cost pools is provided for the year 2019. (19 pts) Estimated Expected Use of Activity Cost Pools Overhead Cost Drivers per Activity Researching legal issues $ 31,500 900 research hours Preparing legal documents 480,000 30,000 pages Meeting with clients. 1.760,000 8,800 professional hours During 2019 the firm worked 660 research hours, 10,000 professional hours, and prepared 25,000 document pages. Instructions Compute the total overhead applied during 2019.

Answer 1

Activity Cost Pool	Estimated	Expected Use of	Activity-Based
	Overhead	Cost Drivers per Activity	Overhead Rates
Researching legal issues	$                31,500.00	900 research hours	$               35.00	per research hours
Preparing legal documents	$              480,000.00	30,000 pages	$               16.00	per page
Meeting with clients	$            1,760,000.00	8,800 professional hours	$              200.00	per professional hours
Cost Drivers	Overhead	Total Overhead
	Rates	Applied
660 research hours	$35/research hour	$                         23,100.00
25,000 document pages	$16/page	$                       400,000.00
10,000 professional hours	$200/professional hour	$                    2,000,000.00
		$ 2,423,100.00