Answer the following questions using the information below:
Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 20X3:

-When using a normal costing system, year-end accounting records will show that indirect costs are:

Question

Answer the following questions using the information below:
Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 20X3:
 
-When using a normal costing system, year-end accounting records will show that indirect costs are:

Quizplus · Accepted Answer

The total indirect costs incurred in 20X3 were $860,000 while the indirect costs allocated based on professional labor-hour basis were $875,000. This indicates that indirect costs were overallocated.

Answer the Following Questions Using the Information Below