a.) Gant Accounting performs two types of services, Audit and Tax. Gant's overhead costs consist of computer support, $300,000 (with a cost driver of CPU minutes); and legal support, $150,000 (with a cost driver of Legal hours used). Information on the two services is:

Audit

Tax

Direct labor cost	$50,000	$100,000
CPU minutes	30,000	20,000
Legal hours used	300	700

Overhead applied to audit services using activity-based costing is

b.) Edmiston Company reported the following year-end information: beginning work in process inventory, $75,000; cost of goods manufactured, $750,000; beginning finished goods inventory, $40,000; ending work in process inventory, $55,000; and ending finished goods inventory, $50,000. How much is Edmiston's cost of goods sold for the year?