The Following Information Has Been Gathered for Catalyst Legal Services

question 59

Multiple Choice

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

• A) $28.60.
• B) $26.57.
• C) $22.50.
• D) $24.22.

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Definitions:

Negotiate

The act of discussing and reaching agreements between parties with differing needs or viewpoints.

Openly Fight

To engage in conflict or dispute without hiding intentions or actions, often in a public or transparent manner.

Dominate

To have control or exert power over someone or something, often in a comprehensive manner.

Capitulate

To surrender or give in to an opponent in a conflict after negotiation or resistance.