Overhead cost calculation for individual lawyer

Assignment Help Accounting Basics
Reference no: EM1362823

A lawyer allocates overhead costs based on his hours working with different clients. The lawyer expects to have $200,000 in overhead during the year and expects to work on clients' cases for 2,000 hours during the year. In addition, he wants to pay himself $50 per hour for working with clients. The lawyer, however, does not bill all of his clients based on covering overhead costs and his own salary. Some clients pay him on contingency fees. If the lawyer works with a client on a contingency fee basis, the lawyer receives half of any settlement for his client. During the year the lawyer works 1,200 hours that are billable to clients. The remaining hours are worked on a contingency basis. The lawyer wins $300,000 in settlements for his clients of which he receives half. The actual overhead was $210,000.

What does the lawyer earn during the year after expenses? Please explain.

Reference no: EM1362823

Questions Cloud

Determine training programs : Evaluating Training Programs - Determine training programs that are implemented within organizations is needed.
Explain how might managers use this information : Assume that macroeconomic forecasters predict that the economy will be expanding in the near future. Explain how might managers use this information.
Whats the coefficient of the kinetic friction of the tires : Whats the coefficient of the kinetic friction of the tire.  What is the acceleration of the car.
Government polices over important areas in lives : The government polices over important areas in our lives. Our health is one of them. They set standards and regulations to help us. Do you think they are doing a good job in this area?
Overhead cost calculation for individual lawyer : A lawyer allocates overhead costs based on his hours working with different clients. The lawyer expects to have $200,000 in overhead during the year and expects to work on clients' cases for 2,000 hours during the year.
Prepare a memo of business research proposal : Memo - business Research Paper Proposal - How much time do you expect the data collection to take and this is usually expressed in days or weeks
What is the translational rms speed of the carbon dioxide : what is the translational rms speed of carbon dioxide molecules.
Implementation of plant : The VP of finance of the ACME Corporation has developed a financial plan that will alleviate some of the cash flow problems that the Corporation has incurred in the past year.
Which is most likely occur under a system of clearly defined : Which is most likely occur under a system of clearly defined and enforced private property rights.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Advanced accounting-journal entries

Prepare all journal entries in all funds and the GCA and GLTL accounts to record the following transactions and events.

  Classifying items into variable and fixed costs

Which of the following is an example of a variable cost?

  Exploring the fascinating topic of international accounting

Do you need to develop your own internal GAAP to manage the company? Let's get creative and brainstorm. There's no right answer here, just the opportunity to begin exploring the fascinating topic of International Accounting.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Prepare journal entry-income statement

The following information has been obtained for the Kerdyk Corporation. Compute taxable income and income tax payable for 2007.

  Determine the amount of sales revenue

Find out the amount of sales revenue dorough will report on the first 2012 quarterly proforma income statement. Prepare cash receipts schedule for the first quarter of 2012

  Tax savings from special tax treatment

Daniel figures that he has loss of $60,000 on each stock. If Daniel's marginal tax rate is 35 percent and he has $120,000 of other capital gains (taxed at 15 percent), what is tax savings from the special tax treatment?

  Materials cost accounting-malbim company

The Malbim Company uses a process costing system and adds materials at the beginning. July 1st has 400 units in the beginning inventory (100% materials). The units in beginning inventory (July 1) are only 75% complete on conversion costs-Calculate..

  Cash and receivables journal entries

Salen Company finances some of its current operations by assigning accounts receivable to a finance company. On July 1, 2012, it assigned, under guarantee, specific accounts amounting to $150,000.

  Maximum deductible contribution

Sidney purchased land in 2004 for $35,000 that she held as a capital asset. This year, she contributed the land to the Boy Scouts of America for use as a site for a summer camp. The market value of the land at the date of contribution is $40,000. ..

  Roi and persuasive arguments to see more possibilities

You manage an investment center (evaluated based on the return on investment). Your production manager brings you a potential deal, a large piece of equipment that can help the company save money.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd