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10. Accounting firm XYZ provides audit tax and general accounting services, it estimates it will have 773 auditing 500 taxation, and 1,000 other service engagements.
10. Accounting firm XYZ provides audit tax and general accounting services, it estimates it will have 773 auditing 500 taxation, and 1,000 other service engagements. The company uses an ABC system with the following three cost pools and cost drivers to allocate its Indirect costs Cost pool Costs Cost driver A udit T ax Other services Internal training overhead 1 50.000 Length of training sessions x number of conference rooms occupied 640 5 10 350 IT Support 4 00.000 Number of tickets 1.200 5 00 300 Researching and interpreting policies and regulations + 80,000 Direct labor hours 550 4 50 200 Total overhead 7 30.000 How much total overhead cost will be allocated to tax services
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