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QUESTION26. K2 is a business law firm specializing in arbitration. Until 2023, ...
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QUESTION26. K2 is a business law firm specializing in arbitration. Until 2023, its management accounting had only one direct expense item (lawyers' remuneration) and a single analysis center (Overhead Expenses). The allocation base was the cost of the lawyers' remuneration (per euro). K2 customers are charged 120% of the total cost of the contracts. The actual cost for 2023 were as follows
Lawyers' remuneration: € 100,000,000
Overheads: € 190,000,000
What is the unit cost of the allocation base in the "Overhead Expenses" center?
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