Answer the following questions using the information below:
Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 20X3:

-When a normal costing system is used, clients using proportionately more attorney time than paraprofessional time will:
A)be overbilled for actual resources used
B)be underbilled for actual resources used
C)be billed accurately for actual resources used
D)result in an underallocation of direct costs

Question

Answer the following questions using the information below:
Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 20X3:
 
-When a normal costing system is used, clients using proportionately more attorney time than paraprofessional time will:
A)be overbilled for actual resources used 
B)be underbilled for actual resources used 
C)be billed accurately for actual resources used 
D)result in an underallocation of direct costs

Quizplus · Accepted Answer

The Answer of Answer the following questions using the information below:
Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 20X3:
 
-When a normal costing system is used, clients using proportionately more attorney time than paraprofessional time will:
A)be overbilled for actual resources used 
B)be underbilled for actual resources used 
C)be billed accurately for actual resources used 
D)result in an underallocation of direct costs

Answer the Following Questions Using the Information Below