Lawrence and Louis Law Firm Uses Activity-Based Costing to Determine

question 27

Multiple Choice

Lawrence and Louis Law Firm uses activity-based costing to determine the costs of its cases. Information about costs follow: The Laurel case required 60 professional hours, 20 of which were partner hours, and labor costs totaled $10,000. If direct costs relating to the case were $1,000, what were the total costs of the Laurel case?

• A)$23,000
• B)$25,500
• C)$21,500
• D)$15,500

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Definitions:

Non-Exclusive Possession

A legal arrangement where property or an asset can be used or occupied by more than one party simultaneously.

Involuntary Bailment

A situation where an individual unintentionally becomes responsible for the custody or care of another's property, without an agreement.

Briefcase

A flat, rectangular container, typically made of leather, used for carrying books, documents, and other items.

Office

A room or set of rooms where business, professional, or administrative work is conducted.