Hobart, Evans, and Nix is a small law firm that contains 10 partners and 12 support persons. The firm employs a job-order costing system to accumulate costs chargeable to each client, and it is organized into two departments - the Research and Documents Department and the Litigation Department. The firm uses predetermined overhead rates to charge the costs of these departments to its clients. At the beginning of the year, the firm's management made the following estimates for the year:
Department
Research and Documents Litigation
Research-hours 33,000 —
Direct attorney-hours 12,400 24,800
Legal forms and supplies £ 22,100 £ 6,900
