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The Legal Firm of West, Green, and Ink Uses ABC

Question 147

Essay

The legal firm of West, Green, and Ink uses ABC to allocate its overhead costs. The firm has identified the following activity cost pools:
A. Direct labor fringe benefits.
B. Printing and photocopying.
C. Secretarial support.
D. Client support.
E. Recruiting and training.
F. Computer support.
G. Liability insurance
Instructions
Match these cost pools with the appropriate cost driver listed below.
______ 1. Revenue billed.
______ 2. CPU minutes.
______ 3. Number of pages.
______ 4. Direct labor cost.
______ 5. Number of clients.
______ 6. Number of recruits.
______ 7. Direct professional hours.

Correct Answer:

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1. G 5. D
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