The law firm of Duwe,Cheatem & Howe provides legal services for clients.During the year,corporate clients required 5,000 hours of legal services,while individuals required 3,000 hours.The firm has traditionally used direct labor hours to assign overhead.
However,Ms.Duwe believes services to businesses cost more than services to individuals and wishes to adopt activity-based costing.The firm's revenues and costs for the year are shown below:

Mr.Cheatem has kept records of the following data for use in the new activity-based costing system:

REQUIRED:

Question

The law firm of Duwe,Cheatem & Howe provides legal services for clients.During the year,corporate clients required 5,000 hours of legal services,while individuals required 3,000 hours.The firm has traditionally used direct labor hours to assign overhead.
However,Ms.Duwe believes services to businesses cost more than services to individuals and wishes to adopt activity-based costing.The firm's revenues and costs for the year are shown below:
  
Mr.Cheatem has kept records of the following data for use in the new activity-based costing system:
  
REQUIRED:

Quizplus · Accepted Answer

The Answer of The law firm of Duwe,Cheatem & Howe provides legal services for clients.During the year,corporate clients required 5,000 hours of legal services,while individuals required 3,000 hours.The firm has traditionally used direct labor hours to assign overhead.
However,Ms.Duwe believes services to businesses cost more than services to individuals and wishes to adopt activity-based costing.The firm's revenues and costs for the year are shown below:
  
Mr.Cheatem has kept records of the following data for use in the new activity-based costing system:
  
REQUIRED:

The Law Firm of Duwe,Cheatem & Howe Provides Legal Services