Reference no: EM132657641

The law firm of Topson Law Firm & Co., currently has four cases as of the end of October 2015:

                                           Case #1                 Case #2               Case #3            Case #4

Direct Material                $480                 $8,800                       $3,700             $850

Direct Labor ($190 per hour)  40                 90                             70                   15

Estimated court hours          12                    65                          120                    40

The law firm allocates overhead to cases based on a predetermined rate of $150 per estimated court hour.

Required:

Question 1: Determine the total costs assigned in different cases.

Question 2: Assume Case #3 was completed at the end of November 2015. At that time, $10,100 of direct materials had been used and 174 direct labor hours had been incurred. Of the DLHs, 102 had not been spent in court. Topson's policy is to charge client costs plus 45%. What amount will be billed to the client involved in Case #3?