The Following Information Has Been Gathered for Catalyst Legal Services

question 126

Multiple Choice

The following information has been gathered for Catalyst Legal Services for its fiscal year ending December 31:
$$\begin{array} { l r } \text { Actual office overhead costs } & \$ 1,275,500 \\\text { Actual billable labor hours } & 44,600 \\\text { Actual billable labor costs } & \$ 3,960,000 \\\text { Estimated office overhead costs } & \$ 1,080,000 \\\text { Estimated billable labor hours } &48,000 \\\text { Estrmated billable labor costs } & \$ 4,320,000\end{array}$$
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What is the predetermined office overhead rate per billable labor dollar?

• A) 118.10%.
• B) 25.00%.
• C) 32.21%.
• D) 400.00%.

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