Thomas and James,a law firm,has support staff for its attorneys.The two attorneys work a total of 2,000 hours each and make $80,000 each per year.The total support budget is $200,000,of which $160,000 is professional support,and $40,000 is general office overhead.A job requiring 50 professional hours should be billed how much for overhead if a simplified costing approach is used and labor cost is the cost driver?

Question

Quizplus · Accepted Answer

The Answer of Thomas and James,a law firm,has support staff for its attorneys.The two attorneys work a total of 2,000 hours each and make $80,000 each per year.The total support budget is $200,000,of which $160,000 is professional support,and $40,000 is general office overhead.A job requiring 50 professional hours should be billed how much for overhead if a simplified costing approach is used and labor cost is the cost driver?

Thomas and James,a Law Firm,has Support Staff for Its Attorneys