Question 23.2: The centralized legal department of Johnson Company has expe...
The centralized legal department of Johnson Company has expenses of $600,000. The department has provided a total of 2,000 hours of service for the period. The East Division has used 500 hours of legal service during the period, and the West Division has used 1,500 hours. How much should each division be charged for legal services?
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East Division Service Charge for legal Department:
$150,000 = 500 billed hours × ($600,000/2,000 hours)
West Division Service Charge for legal Department:
$450,000 = 1,500 billed hours × ($600,000/2,000 hours)
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