Dye and Dye,Attorneys-at-Law,each bill 1,500 hours per year and receive pay of $100,000 each.Four paralegals work for the firm and each receives pay of $40,000 and works 2,000 hours per year.Overhead of $396,000 is anticipated,of which $300,000 is attorney support,and the rest is paralegal support.Determine overhead under each of the following circumstances:
a.A simplified cost approach is used based on hours.
b.A simplified cost approach is used based on payroll dollars.
c.An activity-based costing approach is used.Attorney support is based on labor costs,and paralegal support is based on hours worked.

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The Answer of Dye and Dye,Attorneys-at-Law,each bill 1,500 hours per year and receive pay of $100,000 each.Four paralegals work for the firm and each receives pay of $40,000 and works 2,000 hours per year.Overhead of $396,000 is anticipated,of which $300,000 is attorney support,and the rest is paralegal support.Determine overhead under each of the following circumstances:
a.A simplified cost approach is used based on hours.
b.A simplified cost approach is used based on payroll dollars.
c.An activity-based costing approach is used.Attorney support is based on labor costs,and paralegal support is based on hours worked.

Dye and Dye,Attorneys-At-Law,each Bill 1,500 Hours Per Year and Receive